Labour’s Welfare Cuts to Push 250,000 into Poverty, Impact Assessment Confirms

Rachel Reeves announces further benefit reductions to address fiscal shortfalls, sparking backlash from MPs and campaigners over social consequences.

The UK government's welfare cuts are projected to push 250,000 people, including 50,000 children, into relative poverty by 2030, according to the Department for Work and Pensions' impact assessment.
Changes include a 50% cut and freeze to the universal credit health element for new claimants and stricter eligibility for Personal Independence Payment (PIP), affecting over 800,000 recipients.
The reforms aim to save £3.4 billion by 2030, falling short of the £5 billion initially forecast due to revised Office for Budget Responsibility (OBR) projections.
Labour MPs and campaigners have criticized the cuts as harmful to vulnerable populations, with some calling for alternative measures such as a wealth tax.
The OBR warns that global risks, including potential US tariffs, could further erode fiscal headroom, raising concerns about future tax hikes or spending cuts.