In multiple TV interviews Chancellor Rachel Reeves was quizzed on the government’s own assessment showing welfare cuts could plunge 250,000 people – including 50,000 kids – into poverty
Rachel Reeves has been grilled on benefit cuts after the government’s own analysis showed a grim impact on poverty levels.
In multiple interviews the Chancellor was asked about the Department for Work and Pensions’s official assessment showing the controversial welfare cuts could plunge 250,000 people – including 50,000 kids – into poverty. A leading think-tank also warned lower-income households are forecast to become £500 a year poorer over the next five years.
Quizzed on the findings on Sky News, Ms Reeves was asked: “Was this the most uncomfortable decision you ever had to make”. In a separate interview on BBC Breakfast Ms Reeves was asked a question from a member of the public by the presenter, who said: “Why not a wealth tax, or increase wealth tax. Why are you hitting the poor and disadvantaged?”
But Ms Reeves appeared to reject the official analysis of her welfare reforms, and said she is “absolutely certain” people will not be pushed into poverty. She told Sky News: “I am absolutely certain that our reforms, instead of pushing people into poverty, are going to get people into work.
“And we know that if you move from welfare into work, you are much less likely to be in poverty. That is our ambition, making people better off, not making people worse off, and also the welfare state will always be there for people who genuinely need it.”
The Chancellor also claimed on the BBC the government had already hiked taxes on the wealthy by abolishing the non-dom tax status for the super-rich.
It comes as the Chancellor faces criticism from unions and Labour MPs after she cut welfare and squeezed Whitehall budgets in her Spring Statement on Wednesday. Blaming increased global uncertainty, the Chancellor squeezed £4.8billion out of sickness and disability benefits, leaving disabled people, their families and carers to bear the brunt.
More than three million families on benefits will be hit by the changes, while 370,000 people will lose Personal Independence Payments. Carers will also be clobbered by a £500million cut to their benefits by 2029/30, with around 150,000 people losing out on carer’s allowance or the carer element of Universal Credit. An impact assessment from the Department for Work and Pensions said there will be an additional 250,000 people – including 50,000 children – in relative poverty by 2029/30.
A grim new analysis published on Wednesday also found poorer households are set to be £500 worse off due to measures in Ms Reeves’s Spring Statement. The Resolution Foundation said the bleak economic outlook and benefit cuts will fall disproportionately on lower-income families.
Ruth Curtice, chief executive of the Resolution Foundation, said: “The outlook for living standards remains bleak. Britain’s poor economic performance, combined with policies that bear down hardest on those on modest incomes, mean that 10 million working-age households across the bottom half of the income distribution are on track to get £500 a year poorer over the course of the Parliament.” TUC General Secretary Paul Nowak told the Mirror that the Chancellor had made the “wrong call” to cut disability benefits rather than going after the wealthiest.
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