Rachel Reeves Prepares Billions in Welfare Cuts to Meet Fiscal Targets

The Labour government faces tough choices as fiscal headroom disappears, with welfare reforms and spending cuts expected in the upcoming Spring Statement.

Chancellor Rachel Reeves is expected to announce significant cuts to welfare spending as part of her Spring Statement on March 26.
The Office for Budget Responsibility's updated forecast is anticipated to confirm that Reeves has lost her £9.9 billion fiscal buffer due to economic downturns and global inflationary pressures.
Labour is reportedly considering reforms to disability benefits, including changes to the Work Capability Assessment and Personal Independence Payments, which could save billions but face backlash from charities and economists.
The government is also planning a major crackdown on benefit fraud, granting new powers to recover funds and improve fraud detection systems.
Labour ministers emphasize a moral and practical focus on moving people from welfare into work, with proposed investments in employment support programs for the disabled and long-term sick.