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Reeves Lines Up Welfare Boosts and Targeted Levies Ahead of Wednesday’s Budget

The plan targets a £22bn gap by funding benefit expansions through a mansion surcharge alongside anti‑fraud savings.

Overview

  • Researchers at the Institute for Fiscal Studies say the chancellor needs to find at least £22bn, with reports indicating plans to avoid headline income tax hikes.
  • Reeves is expected to expand welfare, including scrapping the two‑child cap and uprating working‑age benefits, with reports putting the combined cost near £15bn.
  • Multiple outlets report an annual levy on homes valued above £2m that could affect around 100,000 properties and raise roughly £400–£450m, with revaluations to identify liable homes and an option to defer payment.
  • The Budget is set to extend targeted case reviews to clamp down on benefit fraud, aiming to raise about £1.2bn by March 2031.
  • Pension measures are expected to include an above‑inflation state pension rise worth over £550 a year for full‑rate recipients, alongside reported proposals to cap salary‑sacrifice pension contributions and a possible extension of frozen tax thresholds.