Why has the UK government announced swingeing welfare cuts? | Government News

UK Prime Minister Kiir Starmer has revealed a great smuggling of the country’s welfare system, on the pretext that it could provide the country 5 billion pounds (6.48 billion dollars) annually by 2030, but it sparked a political line in this process.
In particular, the government reduces the advantages of health and disability by making it difficult for people with less severe conditions to receive government support.
Starmer faces an angry opposition from charities, tanks of thought, and even senior members of his Labor Party on the moves announced this week.
Prime Minister and Chancellor Rachel Reeves argued that they are forced to revise spending after inheritance of the severe financial situation from the previous conservative government, which has ruled for 14 years under various ministers until the general elections in July.
The UK government runs a major deficit, which means that it must borrow from financial markets every month to finance spending.
However, Starmer’s critics said that these cuts target the most vulnerable people in society and have argued that the Labor Party, which was founded in 1900 of the trade union movement, has lost its goal.
Colom Eastwood, a member of the Labor Party, the Socialist Democratic Party and the Labor Party, in Northern Ireland, pointed to the issue of the component that will lose financial support under the reforms and asked Parliament on Wednesday: “What is the workplace?”
Since the Covid-19 pandemic, the cost of disease and deficit in the United Kingdom increased, as large numbers of people say they are unable to work and need the state to live. Experts said they do not yet know whether this is a direct result of people who are diagnosed in a long way, but during the epidemic, it has become easier for people to apply for benefits without a personality.
Reeves is expected to provide more discounts for government spending in its spring statement to Parliament next week.

What are the advantages of the luxury that cuts the UK government?
The majority of 5 billion pounds of savings will come from tightening the rules of applying for the personal independence payments that are paid to persons with disabilities or long -term diseases.
The benefit includes a daily and daily alive element. PIP is currently pushing to 3.6 million people who register from scratch to 12 for their ability to perform tasks such as preparing food and wearing clothes. The higher the result, more support is provided.
From November 2026, people will need to score at least four points in at least one activity to qualify for the daily living. Things that are less than four points include being reminded of preparing food, helping showering or washing, wearing lower clothes, and the need to help deal with others.
Under strict rules, PIP people will also be reassessed frequently.
PIP payments are usually about 100 pounds ($ 130) per week and still can be paid to people working.
The green health and government deficit will enhance the global credit support (UC) of up to four million families without any conditions or health disabilities of about 3 pounds ($ 3.90) per week, but this is a small part of the wider plan.
How many people will be affected?
Starmer told Parliament that the fact that 2.8 million working people do not work due to the long -term disease is an “indictment” of its predecessors.
The Resolution Foundation, a research center in the center, said if the government plans to provide 5 billion pounds of PIP restriction by making it difficult to qualify for the “daily life” component, then this means that 800,000 to 1.2 million people lose support of 4,200 pounds (5,450 dollars) to 6300 pounds (8,170 dollars)
The decision said: “With the presence of seven out of every 10 PIP students who live in families in the half -more income distribution, these losses will focus greatly among low -income families. This seems to be an exercise on the short -term savings instead of long -term repair.”
What is the logical basis for these cuts?
Since the epidemic, spending has increased on the advantages of health and deficit in the United Kingdom. Benefits now cost 65 billion pounds ($ 84 billion) annually and is expected to rise to 100 billion pounds (130 billion dollars) annually by 2029. This is more than the United Kingdom spends on defense.
The Labor Party says it wants to be a party for people who work and encourage the largest possible number of people to do so.
The Minister of Labor and Pension Stephen Timmes said that the reforms will also lead to savings that protect luxury in the long run.
“We believe that we have now made the regime sustainable, and we are committed to preserving it,” he added.
How did the critics respond to the discounts?
The opposition Conservative Party said that the cuts were “accelerated” only to make government financial resources appear better in the short term, and the social welfare system needs a broader reform of its estimated amount that may save 12 billion pounds ($ 16 billion) annually.
The invitation groups expressed anger at the cuts. “These unethical and destructive benefits will push more disabled people to poverty and exacerbate the health of people,” said a consortium, the benefits of disability, which represents more than 100 charities.
“The government must drop this harsh proposal or will face all the rebellions,” wrote Richard Burgon, a representative of Leeds East.
The Prime Minister was unable to answer a simple question today about the reason why a disabled person was unable to help dining, wash and manage the toilet needs anymore under his proposals.
The government must drop this harsh proposal or will face all the rebellions.
– Richard Burgon, MP (@richardburgon) March 19, 2025
The head of the Labor and Retirement Committee Deby Abrahams, the Labor MP, said that there are “more sympathetic” ways to balance books “instead of the back of the patients and disabled.”
What will be the economic impact of discounts?
The government hopes that these cuts can enable them to reduce borrowing and free money for other things. This step follows one Cut winter fuel payments For some retirees last year.
The Labor Party hopes that by making such controversial moves early in its position, it will have enough time to enhance the economy and persuade voters before the upcoming elections, probably in 2029.
“Rachel Reeves hopes that she will be judged on the basis of the economy’s performance over the duration of this parliament, not only the first few months of this work management,” said Roser, Director of Investment in the Stock Exchange Broken.
“The following elections are not due until August 2029 at the latest, and it is logical to the advisor to try to get bad news from the road now in the hope that the economic image will appear brighter at a time when voters return to the ballot box.”
Will the discounts in public spending heal the UK economy?
OECD has reduced expectations for the United Kingdom due to slow growth in recent times. But the Organization for Economic Cooperation and Development also indicates that the United Kingdom will feel the effects of “increasing geopolitical and political uncertainty in investment and family spending.”
US President Donald Trump expects New tariff To create a global and local environment less suitable for the United Kingdom.
Economists said the savings resulting from these cuts to social welfare payments are much less than 1 percent of GDP (GDP). They added that the biggest problem in the United Kingdom is that it is struggling for economic growth in the first place.
Paul Dalis, the UK’s chief economist in London, said: “The cuts will reduce the total government spending by about 0.15 percent of GDP.
Reeves said that there are more profound changes in government financial affairs. “I don’t think anyone thinks that the current system is working,” she told Reuters. “It does not work with people who get the advantages, and who often besiege the benefits rather than getting the support they need to return to work, … and at the same time, he does not work for taxpayers.”
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2025-03-20 07:48:00