Rachel Reeves delivering her spring statement in the Commons. Photograph: House of Commons
Labour is braced for a backlash from its MPs over welfare cuts called ‘appalling’ by a foodbank charity
Rachel Reeves was accused of balancing the books at the expense of the poor in her spring statement, as official figures showed three million households could lose £1,720 a year in benefits.
The chancellor confirmed welfare cuts of £4.8bn, but insisted the government’s priority was to restore stability to the public finances in the face of rising global borrowing costs.
Economists warned Reeves could be forced to come back with more tax rises in the autumn, with the Office for Budget Responsibility (OBR) saying that any tariffs imposed by Donald Trump may upend their forecasts.
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Ruth Curtice, the director of the Resolution Foundation thinktank, said while Reeves was right to balance the books, she was “wrong to do so on the backs of low- to middle-income families, on whom two-thirds of the welfare cuts will fall”.
Helen Barnard, the director of policy at the food bank charity Trussell, said: “The insistence by the Treasury on driving through record cuts to disabled people’s social security to balance the books is both shocking and appalling. People at food banks are telling us they are terrified how they’ll survive.”
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Keir Starmer confirms that he’s proud to be a red Tory continuing austerity and targeting poor and disabled scum.Keir Starmer says pensioners can freeze to death and poor children can starve and be condemned to failure and misery all their lives.
[UK prime minister Keir Starmer poses in front of soldiers. He] has vowed to put more money in the pockets of working people, but those on lowest incomes are predicted to be hardest hit financially. Photograph: Simon Dawson/No 10 Downing Street
Living standards for all UK families are set to fall by 2030, with those on the lowest incomes declining twice as fast as middle and high earners, according to new data that raises serious questions about Keir Starmer’s pledge to make working people better off.
The grim economic analysis, produced by the respected Joseph Rowntree Foundation (JRF), comes before the chancellor, Rachel Reeves, makes her spring statement on Wednesday in which she will announce new cuts to public spending rather than increase borrowing or raise taxes, so as to keep within the government’s “iron clad” fiscal rules.
In December, the prime minister announced a series of new “milestones” that he said would be passed before the next general election, which is likely to be held in 2029. The first of these was “putting more money in the pockets of working people”.
But with many Labour MPs already deeply concerned over Reeves’s plan to raise about £5bn by cutting benefits, including for disabled people, evidence that living standards are on course to fall markedly under a Labour government – and to decline most for the least well off – will add to the mood of growing disquiet in party’s ranks.
The JRF analysis rests on a realistic assumption that the Office for Budget Responsibility (OBR) will adjust its forecasts in line with the Bank of England and other main forecasters when it makes them public on Wednesday. The OBR is expected to halve the expected growth rate for this year from 2% to about 1%.
In what it describes as a “dismal reality”, the JRF said its detailed analysis shows that the past year could mark a high point for living standards in this parliament. It concludes that the average family will be £1,400 worse off by 2030, representing a 3% fall in their disposable incomes. The lowest income families will be £900 a year worse off, amounting to a 6% fall in the amount they have to spend.
The JRF also said that if living standards have not recovered by 2030, Starmer will not only have failed to pass his No 1 milestone but will also have presided over the first government since 1955 to have seen a fall in living standards across a full parliament.
Keir Starmer commits to play the caretaker role for Capitalism through the “hard times”.Keir Starmer confirms that he’s proud to be a red Tory continuing austerity and targeting poor and disabled scum.
dizzy: Despite being intended as satire, my satire is proving very prophetic, even correct. 26/3/25. That’s not correct is it? While satire was an intention, it’s clear that the intention of many instances was to project into the future.
Chancellor of the Exchequer Rachel Reeves during a meeting at Downing Street in London with regulators. She is expected to use the meeting to announce more detail on how the Government will cut the cost of regulation by a quarter and set out plans to slim down or abolish regulators themselves, March 17, 2025
CHANCELLOR Rachel Reeves is set to announce a huge new programme of spending cuts as unemployment rises and anger at Labour’s assault on disability benefits mounts.
She will use her spring spending statement next week to unveil a fresh austerity programme as the government continues to rule out tax rises on the wealthy as an alternative.
Despair is turning to anger among backbench Labour MPs and trade unions at the government’s course, which is already seeing Labour plunge to record lows in the opinion polls.
Ms Reeves’s death-wish economics come as official statistics showed joblessness increasing, including among young workers.
Unemployment is up by 0.1 per cent, with a youth unemployment rate of 12.9 per cent.
Commenting on the figures, Public and Commercial Services union general secretary Fran Heathcote said: “The labour market figures today highlight the cruelty of the government’s reforms to disability benefits.
“Unemployment is rising, and the wider measure of underemployment is now at 4.75 million with only 816,000 vacancies in the economy — meaning there are already nearly six people chasing every vacancy.
“Those figures exclude disabled people currently deemed unable to work or with only limited capacity for work.
“The reality is that the government’s proposals will not help disabled people off of benefits and into work, but off benefits and into deeper poverty.”
Keir Starmer says pensioners can freeze to death and poor children can starve and be condemned to failure and misery all their lives.Keir Starmer explains the moral case for cutting disability benefits. He says work will set you free.
LEFT-WING campaign group Momentum has begun lobbying Labour MPs to block cuts to welfare spending.
A Commons vote is expected after the government’s proposals to reduce spending on benefits sparked an angry backlash among Labour’s grassroots.
Sir Keir Starmer, who has described the benefits system as the “worst of all worlds,” was jeered at this week’s Prime Minister’s Questions as he insisted that Labour had a duty to reduce social security costs.
Labour MPs urged him to “provide compassion” to those who cannot work, stressing that disabled people have become “frightened” after hearing their party use the “language of tough choices.”
Ministers have already pledged to cut £3 billion from the welfare budget over three years and next week are expected to announce in a green paper that billions more will be axed from the main disability benefit, the personal independence payment (PIP) and funding to help those with long-term illness to return to work.
Cutting PIP could push 700,000 disabled people into poverty, disability charities have warned.
Keir Starmer confirms that he’s proud to be a red Tory continuing austerity and targeting poor and disabled scum.Keir Starmer, Angela Rayner and Rachel Reeves wear the uniform of the rich and powerful. They have all had clothes bought for them by multi-millionaire Labour donor Lord Alli. CORRECTION: It appears that Rachel Reeves clothing was provided by Juliet Rosenfeld.
Sir Keir Starmer has called the current benefits system unsustainable, indefensible and unfair, and said the government could not “shrug its shoulders and look away”.
Addressing Labour MPs on Monday evening, the prime minister said the current welfare system was “the worst of all worlds”, discouraging people from working while producing a “spiralling bill”.
The comments come as Work and Pensions Secretary Liz Kendall prepares to set out changes to the welfare system and cut the benefits bill in the coming weeks.
Chancellor Rachel Reeves has earmarked several billion pounds in draft spending cuts to welfare and other government departments ahead of the Spring Statement.
There is unease over the plans within the party, with Labour MP Rachael Maskell warning against “draconian cuts” that risk “pushing disabled people into poverty”.
Maskell told the BBC she had picked up “deep, deep concern” among Labour MPs.
Keir Starmer confirms that he’s proud to be a red Tory continuing austerity and targeting poor and disabled scum.Keir Starmer, Angela Rayner and Rachel Reeves wear the uniform of the rich and powerful. They have all had clothes bought for them by multi-millionaire Labour donor Lord Alli. CORRECTION: It appears that Rachel Reeves clothing was provided by Juliet Rosenfeld.
