The UK government’s welfare reform U-turn lifts thousands from poverty, reversing what could have been a devastating blow to vulnerable families. A revised impact assessment reveals that 50,000 fewer people, including children and working-age adults, will face relative poverty by 2030.
Initially, the proposed welfare cuts threatened to push 250,000 into hardship. However, after fierce backlash and Labour resistance, Prime Minister Keir Starmer abandoned the most severe measures. The final bill now reduces poverty rather than deepening it.
The original plan included strict eligibility rules for Personal Independence Payments (PIP), risking widespread financial suffering. Charities warned the damage could exceed official estimates. Yet after partial concessions, the projected poverty increase dropped to 150,000.
Finally, the government scrapped PIP cuts entirely. The Resolution Foundation confirms the revised bill will yield no savings by 2030. This leaves the Treasury with a major budget gap, potentially forcing new tax measures.
The welfare reform U-turn lifts thousands from poverty, but it also creates fiscal challenges. The Chief Secretary to the Treasury refused to rule out a wealth tax when questioned in Parliament. Meanwhile, Education Secretary Bridget Phillipson warned that reversing welfare cuts may complicate efforts to abolish the two-child benefit cap.
Critics argue the government must now find alternative savings. Yet anti-poverty campaigners celebrate the change, calling it a vital step in protecting low-income families.
Without this reversal, hundreds of thousands would have faced severe deprivation. The welfare reform U-turn lifts thousands from poverty, proving that policy adjustments can alter lives. Still, advocates stress that long-term solutions are needed to tackle systemic inequality.
As debates over taxation and spending continue, one thing is clear: this last-minute shift prevented a far worse outcome for Britain’s most vulnerable citizens.
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