BREAKING: DWP profit cuts to push over 250,000 individuals into poverty – together with 50,000 children
Benefit cuts will push over 250,000 people – including 50,000 children – are estimated to be plunged into relative poverty.
The damning conclusion comes in the Department for Work and Pension’s own analysis published after Chancellor Rachel Reeves announced further welfare cuts. It shows up to 3.2million families could lose out as a result of the overall reforms.
Under the most controversial reforms – restricting eligibility to PIP benefits – the document says 370,000 people will lose support with the average loss of £4,500-per-year.
It adds: “We estimate there will be an additional 250,000 people (including 50,000 children) in relative poverty after housing costs in 2029/30 as a result of modelled changes to social security, compared to the baseline projections.”
The document stated the estimate does not include the impact of the £1 billion annual funding – by 2029/30 – for measures supporting people into work “which we expect to mitigate the poverty impact”.
It follows last week’s controversial decision to slash billions from sickness and disability benefits – with major changes to PIP benefits.
But in a blow to the Chancellor, the Office for Budget Responsibility (OBR) said ministers have overstated the savings. Delivering the Spring Statement today, Ms Reeves responded by announcing additional savings clawed back from Universal Credit (UC).
Under the new measures UC incapacity benefits for new claimants will now be frozen until 2030 rather than increased in line with inflation. Last week it was announced they would also be cut by 50% for new claimants.
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