FURTHER cuts to welfare spending, and a rise within the defence budget, were announced by the Chancellor, Rachel Reeves, within the Spring Statement, on Wednesday afternoon.
The Department for Work and Pensions released evaluation of the advantages reforms which suggested that 3.2 million families would lose out by 2030. Some of those currently receive support, while others were projected to accomplish that in the following five years. The average loss was expected to be £1720 per family per yr, the evaluation said.
A greater variety of families — 3.8 million — were projected to profit from the changes, but by a smaller average amount of £420 per yr.
Ms Reeves’s decision to deepen the cuts got here after evaluation by the Office of Budget Responsibility (OBR) suggested that the changes to the welfare system announced last week would save £3.4 billion quite than the £5 billion initially projected (News, 19 March).
The Government was, subsequently, taking further steps, she said, including cuts to the health element of Universal Credit. At the identical time, standard Universal Credit payments were set to extend at a rate above inflation, the Chancellor said.
The Government’s priority was to get people into work, she said, but, “should you can’t work, you need to be appropriately supported.”
The chief executive of Christians Against Poverty (CAP), Stewart McCulloch, nevertheless, said that he was concerned that the Government’s actions “will push more individuals with vulnerabilities into deeper poverty and debt. . .
“We welcome efforts to assist people back into work and the planned increase to the essential rate of Universal Credit, but we’re deeply concerned concerning the Government’s decision to freeze the Universal Credit health element for existing claimants and reduce it to £50 per week after which freeze it for brand spanking new claimants until 2030.”
Ms Reeves also announced that the expansion forecast had been revised down from two per cent to 1 per cent for 2025, but, in the long term, the OBR was expecting higher levels of growth.
After her statement, nevertheless, the previous Archbishop of Canterbury Lord Williams said that “growth alone” wouldn’t construct a just society, and called for a wealth tax to “address the soaring inequality that’s so deeply damaging to our collective morale and trust”.
Sarah Edwards, the chief director of the Christian charity the JustMoney Movement, said that the Spring Statement reflected “wrong-headed priorities”.
“Cuts to support for essentially the most vulnerable are morally mistaken, and won’t create the strong, flourishing communities we wish to live in,” she said. “We should tax extreme wealth to boost revenue from those that can most afford it, to assist pay for safety nets for individuals who are struggling, properly funded public services, and put money into an economy that serves people and planet.”
CAP also expressed concern that the Government’s plans would push more vulnerable people into deeper poverty and debt.
“At CAP, we’re meeting head to head with families on low incomes who’re facing enormous personal financial pressure,” Mr McCulloch said. “Our local church debt coaches . . . are visiting people who find themselves living in cold homes, skipping meals and infrequently isolated from their community consequently of living in poverty and debt. Many of those people at the moment are feeling anxious and fearful that the income they depend on could also be reduced in future consequently of welfare cuts.”
The executive director of the Debt Justice coalition, Heidi Chow, also criticised the Government’s plans. She described the further cuts as “an act of cruelty and cowardice” that will only exacerbate the growing UK debt crisis.
“There is nothing on this budget for the tens of millions of people who find themselves over-indebted due to the high cost of living and stagnating incomes,” she said. “We need the Government to offer increased protections for people in severe debt and access to fair options for writing down debt.”
Ms Reeves confirmed that defence spending would increase to 2.5 per cent of GDP, partially funded by a cut in the quantity spent on overseas aid, from 0.5 to 0.3 per cent of GDP.
The Archbishop of York and other bishops criticised the cut to help spending when it was first announced a month ago (News, 25 February). With the exception of international aid, day-to-day government spending would still increase above inflation every yr, Ms Reeves said, while keeping to the Government’s self-imposed fiscal rules.
The Shadow Chancellor, Mel Stride, characterised the choice to make further cuts to welfare as moving “from incompetence to chaos”.
The previous Conservative Government had been implementing welfare cuts, and would have continued if re-elected, he said, but Labour was limited by internal disagreements on welfare reform.
