London: The UK government’s newly announced welfare cuts are expected to push an estimated 250,000 people into relative poverty by the end of the decade, according to its own official projections. The cuts, set to impact millions of families, are a key part of the Labour government’s fiscal strategy but have sparked significant debate over their long-term consequences.
Despite the concerning estimate, the government contends that new policies aimed at integrating individuals with disabilities and long-term health conditions into the workforce will help mitigate the effects of poverty.
As part of Finance Minister Rachel Reeves’ mid-year budget update delivered to Parliament, she confirmed that welfare support, including assistance for individuals with illnesses and disabilities, will be reduced by a total of £4.8 billion ($6.19 billion) over the next five years.
Government Stance on Welfare Reform
“We are confident the changes that we are making, the support we are providing to get people into work, will result in more people having fulfilling careers, paying decent wages … that’s the best way to lift families out of poverty,” Reeves stated during a press conference.
The government reported that one in ten working-age individuals in the UK is currently claiming sickness or disability benefits. The impact assessment of the new measures indicates that approximately 50,000 of the 250,000 expected to fall into relative poverty will be children.
Relative poverty, as defined by the UK government, refers to households with income below 60% of the national median after accounting for housing costs.
Criticism from Advocacy Groups
Critics argue that the cuts will disproportionately harm vulnerable populations, including those with disabilities and chronic health conditions.
“These looming benefit cuts will drive even more people into poverty, not lift them up,” said Clare Moriarty, chief executive of Citizens Advice, an organization that assists individuals with debt and housing issues.
According to government estimates, by the 2029-30 fiscal year, 800,000 people will no longer receive the “daily living” component of the Personal Independence Payment (PIP), a financial benefit currently provided to 3.6 million Britons with health conditions and disabilities.
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Sarah Hughes, CEO of mental health charity Mind, criticized the move, stating, “It’s a political choice to try fixing the public finances by cutting the incomes of disabled people.”
The government, however, maintains that its welfare reforms are designed to make the system more “targeted and sustainable,” ensuring resources are allocated to those most in need.
Public Opinion and Projected Impact
Recent polling suggests that public sentiment is largely skeptical of the benefits system. A YouGov survey conducted this month found that 68% of Britons believe the current welfare system is ineffective and requires reform.
James Taylor, a representative from disability charity Scope, expressed concerns over the rapid implementation of cuts. “The government is rushing to make further cuts with no thought to the impact on disabled people,” he said.
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The government’s assessment further projects that by the end of the decade, 3.2 million families currently receiving disability benefits—or expected to receive them in the future—will face an average annual loss of £1,720 ($2,217).
As the debate over welfare reform intensifies, questions remain over the potential social and economic impact of the proposed cuts and whether the government’s plans to support disabled individuals into employment will be sufficient to offset the rising poverty figures.
