London, March 28, 2025- The UK government is fighting to defend new welfare cuts that independent economists, think tanks and even some of its own backbench MPs warn will force tens of thousands of people into economic hardship.
The measures were announced in the House of Commons yesterday by Chancellor Rachel Reeves, who denies that her government is pursuing economic austerity, something it has promised not to do.
Reeves made the same point on Thursday, telling Sky News that she is “absolutely certain” that the reforms “will get people into work”.
“And we know that if you move from welfare into work, you are much less likely to be in poverty,” she said. “That is our ambition, making people better off, not making people worse off, and also the welfare state will always be there for people who genuinely need it.”
However, the UK’s leading anti-poverty organisations have raised the alarm about the possible consequences of the cuts.
The Joseph Rowntree Foundation, a think tank that campaigns against poverty, warned in a statement that Reeves’ proposal “will harm people, deepening the hardship they already face”.
“The Chancellor also said the world has changed, and today’s announcements places the burden of that changing world on the shoulders of those least able to bear the load — the 3.2 million families left worse off by these cuts,” said the organisation’s chief, Paul Kissack.
“With living standards for the poorest under continuing assault, the government needs to protect people from harm with the same zeal as it attempts to build its reputation for fiscal competence,” he added.
The Labour government’s plans to kickstart the economy were dealt a blow on Wednesday when the OBR halved its annual growth forecast to 1%.
