UK Welfare Cuts to Reduce Benefits and Deepen Poverty, New Analysis Shows

Chancellor Rachel Reeves defends welfare reforms projected to push 250,000 people into poverty as Labour MPs and advocacy groups voice opposition.

The UK government has announced further welfare cuts, including halving and freezing the health element of Universal Credit for new claimants until 2030.
An official impact assessment reveals the reforms will push 250,000 people, including 50,000 children, into poverty by 2029/30.
Eligibility changes to Personal Independence Payment will result in 370,000 current claimants losing their entitlement, with 430,000 future claims also affected.
Labour MPs and advocacy groups have criticized the measures, warning of worsened poverty, health outcomes, and strain on public services.
The Office for Budget Responsibility UK’s 2025 economic growth forecast to 1% and questioned the projected £5 billion savings from the welfare reforms, estimating only £3.4 billion will be achieved.