Labour Faces Backlash Over £5 Billion Welfare Cuts as Impact Assessment Looms

Charities, health experts, and Labour MPs warn of severe consequences for vulnerable populations as the government prepares to release an official impact assessment alongside the Spring Statement.

The Labour government plans to cut £5 billion from welfare spending, focusing on tightened eligibility for Personal Independence Payment (PIP) and Universal Credit.
Between 800,000 and 1.2 million people are projected to lose PIP benefits, with annual losses per individual estimated between £4,200 and £6,300 by the end of the decade.
Charities report a surge in calls for help, with some individuals expressing severe distress over the proposed reforms, which they fear could lead to poverty and mental health crises.
The government defends the cuts as necessary for economic sustainability, pledging £1 billion annually by 2029/2030 to support workforce reintegration and introducing a premium for those with severe conditions.
An official impact assessment, expected today, will coincide with the Chancellor's Spring Statement, providing further clarity on the reforms' implications.

The Independent

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