The UK’s Spring Statement has sparked widespread criticism and concerns over the chancellor’s decision to balance the books on the backs of low-income families, with many warning that it will leave 3.2 million families £1,700 worse off on average.
The UK’s Spring Statement has sparked widespread criticism and concerns over the chancellor’s decision to balance the books on the backs of low-income families.
Low-income families often struggle to meet their basic needs, including food, shelter, and healthcare.
According to the US Census Bureau, in 2020, over 33 million people lived in poverty.
Limited financial resources can lead to stress, anxiety, and decreased opportunities for education and employment.
Additionally, low-income families may face housing insecurity, malnutrition, and inadequate access to healthcare services.
The ‘The Resolution Foundation, a think tank that focuses on improving living standards for those on low-to-middle incomes, has declared that Rachel Reeves is wrong to do so.’
According to the Resolution Foundation, the welfare cuts will leave 3.2 million families £1,700 worse off on average and risk causing ‘significant damage’ to many families’ living standards.
The think tank argues that extending the freeze in personal tax thresholds by just a single year would have saved almost as much (£3.9bn in 2029-30) and would have been shared far more widely across 24 million households.
Ruth Curtice, chief executive at the Resolution Foundation, warns that the living standards pain this decade could be even worse than in the 2010s.
Living standards refer to the quality of life and well-being of individuals within a society.
Over time, living standards have improved significantly due to advancements in technology, education, and healthcare.
According to the World Bank, the global poverty rate declined from 35% in 1990 to less than 10% in 2015.
Improved access to clean water, sanitation, and electricity has also contributed to better living standards.
In developed countries, living standards are measured by factors such as income, education, healthcare, and housing.
She notes that having set her new fiscal rules only last autumn, and faced with rising debt interest costs and a weaker outlook for the public finances, Rachel Reeves had little choice but to make a downbeat Spring Statement.
However, Curtice argues that while the Chancellor was right to balance the books, she was wrong to do so on the backs of low-to-middle income families. Over three million households will be worse off as a result of welfare changes.
The ‘Resolution Foundation also criticizes the government’s approach to welfare reform, saying it rarely ends well for individuals or the Government.’
The decision to balance the books on the backs of low-income families has sparked concerns over the impact on vulnerable groups. The Green party has described the decision as ‘morally repugnant‘ and says that the Chancellor chose to take from the most vulnerable to balance her books.
Adrian Ramsay, co-leader of the Green party, notes that the Chancellor had a choice today: to rebalance our economy by asking the very wealthiest to contribute more or to remove vital support from ill and disabled people. He argues that this decision is a damning reflection of how out of touch this government is.
The Spring Statement has also raised concerns over the economic implications of the Chancellor’s decisions. The Office for Budget Responsibility (OBR) has forecast that tax as a share of the economy will hit a historic high within three years and halved the revised growth forecast for 2025 from 2% in the autumn to 1% today.
Ben Harrison, director of the work foundation at Lancaster University, notes that against a backdrop of slashed growth forecasts, the OBR confirmed that real GDP per person is still below its 2022 level and will not recover until 2026. Many workers across the country are still struggling to make ends meet, despite strong wage growth.
The Spring Statement has sparked a call for action from various groups and individuals. Carers UK has warned that the news that 150,000 carers will lose the carer’s allowance will cause ‘huge anxiety‘ and says that this is an unprecedented step in the wrong direction.
Helen Walker, chief executive of Carers UK, notes that carers save the UK economy an estimated £184bn a year but now many more are in danger of further financial hardship and poverty. She argues that they deserve so much more.
Carers UK is a leading charity that supports and empowers carers in the United Kingdom.
With over 50 years of experience, they provide information, advice, and guidance to help carers navigate their roles.
According to their research, there are approximately 5.7 million unpaid carers in the UK, with one in seven people caring for a loved one.
Carers UK offers online resources, helplines, and local support groups to assist carers with their responsibilities.
The Spring Statement highlights the need for a more balanced approach to economic policy. The Chancellor’s decision to balance the books on the backs of low-income families has sparked widespread criticism and concerns over the impact on vulnerable groups.
As the government moves forward, it is essential to consider alternative approaches that prioritize the needs of those most in need. By working together, we can build a more equitable and sustainable economy that benefits everyone, not just the wealthy few.
- theguardian.com | Reeves accused of balancing books on back of UK’s poorest
- theguardian.com | 250,000 more people will face relative poverty after Rachel Reeves ...
