Quarter of a million people, including 50,000 children, pushed into poverty by end of decade due to welfare reforms, according to government’s own impact assessment
In her Spring Statement 2025, Chancellor Rachel Reeves unveiled a £14bn package to repair the UK economy, including £5bn in welfare cuts. Reeves refused to rule out further cuts or tax hikes, facing criticism from Labour MPs concerned the cuts will increase poverty. Government analysis indicates the cuts will push 250,000 people, including 50,000 children, into poverty, affecting 3.2 million families who will lose an average of £1,720 annually. The OBR has not yet assessed the Employment Rights Bill's impact, but anticipates regulations affecting business and labor market flexibility will likely have a negative economic impact.
