UK Government Confirms No Reversal on Disability Benefit Cuts Amid Major Investment Plans
Rachel Reeves, UK Treasury chief, defends planned cuts to disability benefits while announcing significant investments in housing and infrastructure over the next decade.
Spending review 2025: key points at a glance
The Guardian
Overview
- Rachel Reeves confirmed that the government will not reverse cuts to sickness and disability benefits despite facing criticism from various quarters.
- Discussions are ongoing between Liz Kendall and Reeves regarding potential reviews of the assessment process for Personal Independence Payments (PIP).
- Reeves emphasized a focus on government spending priorities that avoid tax increases, aiming to adjust rules rather than eliminate disability benefits.
- A £39 billion investment in social and affordable housing was announced by Reeves, marking the largest funding boost in 50 years.
- The Labour government seeks to regain political momentum through Reeves' spending plans, following a landslide victory fueled by calls for change.
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Analysis
Emphasizes Labour's strategy to regain political initiative through disciplined spending plans by Reeves.
Britain's Labour government aimed to regain political initiative through Treasury chief Rachel Reeves' presentation of spending plans for the upcoming years.
Labour's landslide victory last year was fueled by a slogan of 'change' and voter anger towards the Conservative administration in power.
Reeves has vowed to stick to her self-imposed fiscal rules and avoid excessive spending.
Articles (7)
Center (3)
"…The Spending Review is not a Budget in which taxes are changed or a host of new policies announced."
BBC News·20d·"…Reeves is expected to argue the government is on the path to “renewing Britain” but that “too many people in too many parts of the country are yet to feel it.”"
ABC News·20d·"…Reeves announced a 190 billion pound ($260 billion) boost for Britain’s public services, many of which have been hollowed out by the austerity policies enacted by the previous Conservative government."
Associated Press·20d·FAQ
The UK government plans to cut disability benefits, including changes to Personal Independence Payments (PIP), which could affect up to 800,000 people. Additionally, there are plans to freeze and reduce elements of Universal Credit for new recipients, impacting 3 million people.
The cuts are part of a broader strategy to avoid tax increases and focus on other spending priorities, such as a £39 billion investment in social and affordable housing.
The cuts are expected to push an additional 400,000 people into poverty, including 50,000 children, and could exacerbate financial hardships for those reliant on these benefits.
History
- 20d4 articles