Rachel Reeves has refused to rule out further cuts or future tax hikes, as she faces criticism from members of her own party following her spring statement.
The Chancellor did not deny more measures could be announced at her next budget in response to speculation she will be forced to find more money to balance the books.
“I’m not going to write four years of budgets, I’ve just delivered a spring statement today,” she said.
Delivering her spring statement on Wednesday, the chancellor unveiled a £14bn package to repair the UK economy that included cuts to welfare, prompting criticism from Labour MPs who urged her to reverse cuts amid warnings they will lead to increased poverty.
Labour MP Debbie Abrahams, who chairs the Work and Pensions Committee, told the Commons: “All the evidence is pointing to the fact that the cuts to health and disability benefits will lead to increased poverty, including severe poverty, and worsened health conditions as well.
“How will making people sicker and poorer help in terms of driving our economy up and people into jobs?”
Spring Statement latest news
- Trump announces 25% tariffs on vehicle imports in fresh blow to Reeves
- Trump tariffs could wipe out Reeves' headroom, OBR warns
- Reeves’ benefit cuts to plunge 250,000 people into poverty, government admits
- Growing criticism from Labour backbenchers
- Reeves refuses to rule out further cuts
Ban on outdoor smoking in hospitality settings not being considered, says minister
23:00
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Tara Cobham
Extending an outdoor smoking ban to hospitality settings is not being considered “at this time”, a health minister told the Commons.
The government distanced itself from plans to ban smoking in the gardens of pubs, bars and restaurants last year, following concerns raised by the hospitality sector.
Smoking outside schools, children’s playgrounds and hospitals will be prohibited under the Tobacco and Vapes Bill.
The Bill also aims to create a smoke-free generation with anyone born after January 1 2009 to be prevented from legally smoking, by gradually raising the age at which tobacco can be bought.
A total ban on vape advertising and sponsorship, including displays seen by children and young people such as on buses, in cinemas and in shop windows, is also included in the Bill, bringing them in line with tobacco restrictions.
Speaking at the Bill’s report stage, health minister Ashley Dalton urged MPs not to listen to the “tobacco industry’s arguments and myths about how people should be free to make their own choices”.
She added: “Smoking kills two-thirds of its users, three-quarters of people wish they’d never started smoking, and the majority want to quit. That’s not freedom of choice, the tobacco industry took away their choice with addiction, usually at a young age.
“In relation to smoke-free places, we’ve been clear, in England we intend to consult on extending smoke-free outdoor places to outside schools, children’s playgrounds and hospitals – but not outdoor hospitality settings, at this time.”
Trump announces 25% tariffs on vehicle imports in fresh blow to Reeves
22:37
,
Athena Stavrou
Donald Trump has announced 25 per cent tariffs on all motor vehicle imports to the United States, in a move that will inflict another blow on the UK economy.
During a press conference in the Oval Office, the US president announced that cars and light trucks imported into the US would be subject to the levy in the latest escalation of the Trump administration’s far-reaching trade war.
“What we’re going to be doing is a 25% tariff for all cars that are not made in the United States,” Trump said.
The announcement raises fears of greater economic pain in the UK, whose largest vehicle export market is the US, having exported £6.4bn in motor vehicles to the United States in 2023, according to the Office of National Statistics.
Read more here:
Comment: Rachel Reeves’s sticking-plaster solutions won’t fix the economy
22:30
,
Tara Cobham
The hole in Rachel Reeves’s spring statement was that she all but admitted she had failed to “fix the foundations” – her big boast in the Budget just five months ago.
She had come to the Commons to announce policy changes because “the world has changed”. But the whole point of fixing the foundations was to strengthen the public finances so that they could withstand unexpected pressures.
The chancellor was coy, in any case, about the way in which the world had changed. She mentioned Vladimir Putin’s invasion of Ukraine, but that really got going three years ago. So she said vaguely that it had “since escalated further”, which is a strange way of saying that, in the past five months, Donald Trump has threatened to pull the plug on the Ukrainians.
The Independent’s chief political commentator John Rentoul writes:
Trump tariffs could cut growth and wipe out Chancellor’s headroom, OBR warns
22:00
,
Tara Cobham
Donald Trump’s threatened tariffs could wipe out Rachel Reeves’s headroom and knock a percentage point off GDP, the Office for Budget Responsibility has said.
The US president has repeatedly threatened to impose wide-ranging tariffs on foreign goods that could amount to 20 per cent on British goods and come into effect next week.
In its economic forecast published on Wednesday, the OBR said the most “severe” scenario, in which the UK and other nations retaliated to the imposition of tariffs, would see GDP 0.6 per cent lower than forecast this year and 1 per cent lower next year.
This scenario would also “almost entirely eliminate” the Chancellor’s £9.9 billion headroom against her fiscal rules, potentially forcing her to implement further spending cuts or tax rises.
An alternative scenario, in which the UK does not retaliate, would see a smaller reduction in growth, with GDP 0.4 per cent lower than expected this year and 0.6 per cent lower next year.
But it is unclear whether this forecast means the Chancellor will resist pressure to retaliate against any American tariffs.
Talks between the UK and US on avoiding tariffs remain ongoing, with Trade Secretary Jonathan Reynolds visiting Washington last week to discuss an “economic deal”.
But Mr Reynolds was unable to secure an exemption for the UK from steel tariffs imposed by Mr Trump earlier in March.
The OBR added that even a more limited regime in which the US only increased tariffs on Chinese, Canadian and Mexican goods could see the UK economy 0.2 per cent smaller than expected next year.
Sketch: Battle-tank Reeves crushes the Tories – but her own side are yet to be steamrollered
21:30
,
Tara Cobham
There’s something of a battle-tank about Rachel Reeves, so it was no surprise that she started her big day posting a picture of herself posing by an actual armoured car and flanked by soldiers in khaki.
Gears crunching, helmet hair rigid, the chancellor’s verbal caterpillar tracks soon flattened another chunk of the welfare budget. “Economic security is non-negotiable,” she intoned, Dalek-like. Exterminate!
Reeves’ military imagery alluded to one of her key messages, which she repeated all day long, that “the world is changing”. This is the Treasury’s latest excuse for the economy not growing in the way that Labour promised, but it also sounds uncomfortably similar to “events, dear boy events”, which was the answer famously given by Harold Macmillan when asked why governments lose elections.
Joe Murphy writes:
Reeves disagrees with Treasury deputy
21:17
,
Athena Stavrou
Rachel Reeves said comparing efforts to get people into work with encouraging children to get a Saturday job is “not the right analogy”, after her deputy likened benefits to pocket money.
Asked about the remarks made by chief secretary to the Treasury Darren Jones, the Chancellor told LBC: “My children and the chief secretary’s children are too young, but if you have a 16-year-old and you say, ‘you know what I’m not going to give you so much pocket money. I want you to go out to work’, and then the OBR does an impact assessment and says you’re child is going to be worse off – well, they’re going to be worse off if they don’t go and get themselves a Saturday job.
“But if they do go and get themselves a Saturday job, they’ll probably be better off and they probably might enjoy it as well.
“Now, that’s not the right analogy, but there are lots of people who have a disability that are desperate to work and, with the appropriate support, and with an employer that is sympathetic and can find work that is appropriate, I know that there are many more disabled people who can work and want to work.
“And if they go to work, they’ll be earning more money, more money for them and their families, but also contributing to the national economy too.”
Government faces further defeat on business rates reforms
21:00
,
Tara Cobham
The government faced a further defeat on its business rates reforms as peers insisted that it conducts a review into the effect of the £500,000 threshold on businesses whose rateable value is close to that figure.
The House of Lords supported by 277 votes to 162, majority 115, an amendment to the Non-Domestic Rating (Multipliers and Private Schools) Bill that would ensure this review takes place within six months of the Bill passing.
Reeves’ benefit cuts to plunge 250,000 people into poverty, government admits
20:30
,
Tara Cobham
Rachel Reeves’ benefits cuts will push an estimated quarter of a million people, including 50,000 children, into poverty by the end of this decade, according to the government's own impact assessment.
Ministers finally published the document alongside the spring statement, a week after they first outlined moves to slash £5 billion from the welfare bill.
It also reveals that 3.2 million families will lose out, on average by £1,720 a year.
Read the full story here:
Workers’ rights plans could have ‘negative’ impact, watchdog suggests
20:00
,
Tara Cobham
Labour’s plan for workers’ rights could have a “negative” impact on employment, a member of the budget watchdog has said.
The Office for Budget Responsibility (OBR) has said they have not yet been able to take account of the Employment Rights Bill in their forecasting as there is not enough detail available on the policy.
However, in their forecast released on Wednesday, they say that regulations which “affect the flexibility of businesses and labour markets” are likely to have “material and probably net negative, economic impacts on employment, prices, and productivity”.
Professor David Miles, a member of the OBR’s budget responsibility committee, said that measures which reduce an employer’s flexibility could have a negative impact.
The proposed law is currently making its way through Parliament, and contains proposals such as a right to guaranteed hours and new restrictions on so-called “fire and rehire” processes.
In their economic and fiscal outlook released on Wednesday, the OBR said: “We are yet to reflect the impact of the Government’s Employment Rights Bill in the forecast,” adding that there is not yet sufficient detail or clarity about policy parameters” for them to be able to make a useful assessment.
They go on to say: “Employment regulation policies that affect the flexibility of businesses and labour markets or the quantity and quality of work will likely have material and probably net negative economic impacts on employment, prices and productivity.”
They added that they will incorporate a “central estimate” of the policy in their next forecast, expected in the autumn.
Reeves disagrees with government impact assessment of welfare changes
19:47
,
Athena Stavrou
Rachel Reeves said she does not believe that 3.2 million people will be worse off from the welfare changes, or that 250,000 will be pushed into relative poverty, as the Government’s own impact assessment suggests.
Asked whether she denied that this would be the impact, the Chancellor told LBC: “I don’t think that is what will happen… what the OBR say is they’re not at this stage making any allowance that people are likely to go into work, but we’ve put aside a billion pounds for personalised guaranteed training.”
Reeves facing criticism from Labour backbenchers
19:37
,
Athena Stavrou
Rachel Reeves has faced criticism from her own party following her spring statement.
Labour MPs have urged the Chancellor to reverse cuts to health and disability benefits, confirmed in her speech today, amid warnings they will lead to increased poverty.
Nadia Whittome, MP for Nottingham East, asked Ms Reeves: “What is the justification for cutting disability benefits – especially when a third of disabled people are already in poverty – instead of choosing to tax the growing wealth of the super rich?”
Labour MP Debbie Abrahams, who chairs the Work and Pensions Committee, told the Commons: “All the evidence is pointing to the fact that the cuts to health and disability benefits will lead to increased poverty, including severe poverty, and worsened health conditions as well.
“How will making people sicker and poorer help in terms of driving our economy up and people into jobs?”
Martin Lewis gives verdict on spring statement as ISA reforms underway
19:30
,
Tara Cobham
Martin Lewis has given his take on Labour’s spring statement, questioning Rachel Reeves’ claim about how much “better off” families are set to be in the near future.
Writing on X, the money expert called into question the chancellor’s claim that real household disposable income is set to rise £500 under this Labour government. The reality is “not that rosy” he said, pointing to a contradictory explanation in the Office for Budget Responsibility’s (OBR) corresponding economic report.
The reason for this is because the £500 figure is “over the life of parliament not per year,” he explains.
My colleague Albert Toth reports:
Reeves refuses to rule out further cuts
19:30
Rachel Reeves declined to rule out hiking taxes at her next budget in response to speculation she will be forced to find more money to balance the books.
But she insisted she was focused on growing the economy as a way to generate revenue, rather than relying on tax rises or spending cuts.
The Chancellor said: “I’m not going to write four years of budgets, I’ve just delivered a spring statement today.
“But I think you can see through this spring statement how determined I am, how determined this government is, to live within the means that we set ourselves in the budget last year and to grow our economy because that is the way to sustainably improve living standards and have the money that we need for our public services.”
At a Downing Street press conference she said her “once-in-a-generation” tax-raising first budget in October had “wiped the slate clean” and would not need to be repeated.
“There was lots of speculation that I was going to change taxes today, the Tories were desperate to call this an emergency budget – it was far from it,” she said.
18:40
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Spring statement will lead to six months of ‘damaging speculation’, IFS warns
The Chancellor’s decisions at the spring statement will lead to six months of “damaging speculation and uncertainty over tax policy” ahead of the next budget, an influential economics think tank has warned.
Paul Johnson, director of the Institute for Fiscal Studies (IFS), warned that Rachel Reeves’s commitment to her fiscal rules – while maintaining only a small headroom for unexpected extra costs – had left her “at the mercy of events”.
He added: “Ms Reeves has left herself with the same £9.9 billion sliver of headroom against her target to balance the current budget as she had in October, and a very similar amount of headroom against the target that debt should be falling in 2029–30 (£15.1 billion, down from £15.7 billion in October).
“All of that adds to uncertainty around policy. We can surely now expect six or seven months of speculation about what taxes might or might not be increased in the autumn.
“There is a cost, both economic and political, to that uncertainty. The Government will suffer the political cost. We will suffer the economic cost.”
Trump tariffs could wipe out Reeves' headroom, OBR warns
18:12
,
Athena Stavrou
Tariffs threatened by Trump could could eliminate all of Rachel Reeves’ margin of error in her budget if they are implemented, the Office for Budget Responsibility has warned.
The US president has repeatedly threatened to impose wide-ranging tariffs on foreign goods since he took office.
Talks between the UK and US on avoiding tariffs remain ongoing, but measures could amount to 20 per cent on British goods and come into effect next week.
In its economic forecast published on Wednesday, the OBR said the most “severe” scenario, in which the UK and other nations retaliated to the imposition of tariffs, would see GDP 0.6 per cent lower than forecast this year and 1 per cent lower next year.
This scenario would also “almost entirely eliminate” the Chancellor’s £9.9 billion headroom against her fiscal rules, potentially forcing her to implement further spending cuts or tax rises.
Comment: What Rachel Reeves’ sobering spring statement really means for growth
18:00
,
Tara Cobham
Growth, growth, growth! Chancellor Rachel Reeves seems to say that word every time she opens her mouth. Trouble is, it has been evaporating quicker than a summertime saucer of milk put out for the Downing Street cat.
She was at it again in her spring statement, aka the emergency budget. Bookies are going to be taking odds on how many times she says that word during her next big event in the autumn. Sadly for her, as was widely expected, the Office for Budgetary Responsibility (OBR) cut its 2025 growth forecast in two.
It had pencilled in 2 per cent for 2025. That is now down to a tepid 1 per cent. The decision brings the spending watchdog into line with other forecasters, such as the Bank of England (0.75 per cent down from 1.5 per cent) and the OECD (1.4 per cent down from 1.7 per cent).
James Moore writes:
Government’s view on digital services tax has not changed, Reeves says
18:30
,
Tara Cobham
Rachel Reeves has said the government’s view on the digital services tax has not changed.
She told a press conference: “We believe that companies should pay tax in the countries in which they operate, which is why we introduced a digital services tax in the first place – and our views on that have not changed.”
Reeves declines to rule out hiking taxes at next budget
17:38
,
Tara Cobham
Rachel Reeves declined to rule out hiking taxes at her next budget in response to speculation she will be forced to find more money to balance the books.
But she insisted she was focused on growing the economy as a way to generate revenue, rather than relying on tax rises or spending cuts.
The Chancellor said: “I’m not going to write four years of budgets, I’ve just delivered a spring statement today.
“But I think you can see through this spring statement how determined I am, how determined this government is, to live within the means that we set ourselves in the budget last year and to grow our economy because that is the way to sustainably improve living standards and have the money that we need for our public services.”
At a Downing Street press conference she said her “once-in-a-generation” tax-raising first budget in October had “wiped the slate clean” and would not need to be repeated.
“There was lots of speculation that I was going to change taxes today, the Tories were desperate to call this an emergency budget – it was far from it,” she said.
Reeves and Healey visibly impressed by UK's first AI-powered strike drone
17:38
,
Tara Cobham
Rachel Reeves and John Healey were visibly impressed when shown the UK’s first AI-powered strike drone by staff at Helsing during their visit to Wellington Barracks.
Ms Reeves said it was “amazing” and reiterated that she was pleased to announce more money for defence in her spring statement.
Speaking about the Ministry of Defence, Ms Reeves added: “I guess because of Ukraine there has been a necessity to do things differently, and now we can learn from that for the more everyday (things).”
Chancellor still 'confident' economy will grow despite OBR warnings
17:16
,
Tara Cobham
The Chancellor is “confident” the government’s package to boost workers’ rights will help the economy grow, despite warnings from the Office for Budget Responsibility (OBR) to the contrary.
The fiscal watchdog warned the Employments Rights Bill, currently making its way through Parliament, could have a negative impact on economic growth.
Asked about the OBR’s assessment, the Chancellor told reporters at a press conference in Downing Street: “As we grow the economy we want ordinary working people to benefit, and that is why we are banning exploitative zero-hours contracts, fire-and-rehire, and also it’s why we are increasing the national living wage, because we want to incentivise people to go into work, and for that work to offer the security and dignity that should come from employment.
“The OBR hasn’t put anything in their forecast today about the Employment Rights Bill because it is still working its way through Parliament.
“But we’re confident that it will result in ordinary working people having more money in their pockets but also having the security to spend that money because they don’t have to worry from week to week whether they’ll be in work or how many hours they’ll get.”
Reeves defends herself over freebies row by saying she's 'not a huge Sabrina Carpenter fan'
17:11
,
Tara Cobham
Rachel Reeves has defended herself over the freebies row by saying she is “not personally a huge Sabrina Carpenter fan, being a 46-year-old woman”.
The chancellor told reporters this afternoon that a member of her family wanted to go to the singer’s concert and “for security reasons” they had to sit in a box.
She insisted that normal seats “would’ve been a lot nicer and easier” for her and her family, but she was advised to take the box.
She admitted: “I do recognise people see it as a bit odd.”
Reeves defends her own government’s damning assessment of her welfare cuts
17:06
,
Tara Cobham
Rachel Reeves has defended her own government’s damning assessment of her welfare cuts.
The government’s own impact assessment said after delivering her spring statement that an estimated quarter of a million people, including 50,000 children, would be pushed into relative poverty by the end of the decade as a result of welfare reforms.
During a press conference this afternoon, the chancellor said: “The quarter of a million people is based on absolutely no one going into work who were previously out of work. And yet we’re putting £1bn in for targeted employment support to get people back to work.
“So I’m confident that our plans far from increasing poverty will actually result in more people having fulfilling work paying a decent wage, to lift themselves and their families out of poverty.”
Reeves responds to prospect of Trump's tariffs: 'Let's see where we are'
17:00
,
Tara Cobham
Rachel Reeves has given an uncertain response as she was quizzed over the prospect of Donald Trump’s tariffs.
As she faced a grilling at a press conference this afternoon, she said: “Tariffs will damage both of our economies.
“We will continue to make the case for free and open trade.
“Let’s see where we get to in the next few weeks.”
Reeves insists spring statement not 'emergency budget'
16:56
,
Tara Cobham
Rachel Reeves has had to insist her spring statement was not an “emergency budget”.
When asked by Beth Rigby’s Sky News about her claims the October budget was a “once in a generation”, she insisted today’s announcement was different.
In October the chancellor raised taxes by £40bn, while she announced £14bn in spending cuts today.
But she insisted the spring statement was “far from” an emergency budget.
Reeves grilled at press conference after delivering spring statement
16:51
,
Tara Cobham
Rachel Reeves is giving a press conference after delivering her spring statement.
She has faced criticism over the major budget and welfare cuts announced earlier.
Watch live: Rachel Reeves holds press conference after spring statement backlash
16:49
,
Tara Cobham
VOICES: No matter what Rachel Reeves says, Labour is delivering Austerity 2.0
16:39
,
Andrew Grice
In her spring statement, Rachel Reeves played a bad hand as well as anyone could. She pinned the blame for a rethink only four months after her Budget on "increased global uncertainty" and “a world that is changing before our eyes.” That is code for Donald Trump’s tariffs and his forcing Europe to spend more on defence.
Yet the chancellor will not entirely erase the impression that her bigger-than-planned update was caused in part by her decision last October to impose a £25bn tax hit on business, which has surely contributed to the UK’s anaemic growth.
Reeves used to attack Tory austerity as a "failed experiment" and in her Mais lecture a year ago called it a "major failing" which inflicted "severe damage to our social fabric and to our public services." Now the tables are turned, and the Tories are accusing her of reviving austerity. A bit cheeky given their ideological crusade to shrink the state, but many Labour MPs privately agree.
Andrew Grice writes:
International Development Committee chair condemns 'dangerous hasty' aid cuts
16:27
,
Tara Cobham
The Chair of the International Development Committee has condemned the government’s “dangerous hasty” choice to cut aid.
Sarah Champion said: “Today’s statement confirms not only that the Government is committed to reducing aid but that they will do so rapidly. Cuts are already kicking in and will only become more brutal from 2026/27.
“Will teams responsible for delivering aid be able to assess the impact of cuts? Which programmes will be cut, and which groups of people will be left to pick up the pieces?
“Cutting aid to the world’s poorest should not be taken lightly. If the government is committed to this change, I urge it to take more time to consider the full ramifications of dangerously hasty cuts.”
Children's charity calls on government to rethink spring statement as 50,000 children plunged into poverty
16:23
,
Tara Cobham
A children’s charity has called on the goverment to rethink its spring statement as 50,000 more children are now “condemned” to a life of poverty by the end of the decade.
Action for Children’s Head of Policy and Research, Julia Pitman, said: “The Government has previously described increases in child poverty since 2010 as ‘shameful’, yet we now know from its own analysis that its cuts to the social security system will condemn 50,000 more children to a life of poverty by the end of the decade.
“We urge ministers to rethink this political choice, which targets the most vulnerable children in society and appears to undermine the government’s promise to ‘turn the tide on child poverty’, with its forthcoming Child Poverty Strategy.”
Resolution warns of 'bleak' 2020s even worse than austerity of 2010s
16:20
,
Tara Cobham
The head of the Resolution Foundation has said the outlook is “bleak” following the spring statement, predicting that Britain is set for even worse living standards than the austerity of the 2010s.
Ruth Curtice, Chief Executive at the think tank, said: “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.
“But while the Chancellor was right to balance the books, she was wrong to do so on the backs of low-to-middle income families, on whom two-thirds of the welfare cuts will fall. Over three million households will be worse off as a result of welfare changes.
“Major cuts to Universal Credit were made so late in the day that the OBR was unable to assess them, suggesting that long-term change is playing second fiddle to short-term savings. This approach to welfare reform that rarely ends well for individuals or the Government.
“The £3.6 billion trimming of departmental spending is a far cry from the austerity of the 2010s. But it is not pain-free either – crucial public services like courts, prisons and local government will feel the strain of reduced funding in the second half of this parliament.
“The government’s welcome ambition to kickstart growth got closer to reality today, with planning reforms set to boost GDP in the coming years. But the outlook still looks bleak. Much has been made of the living standards pain Britain experienced during the 2010s, but the 2020s are still on track to be even worse.”
'Austerity is back,' warns Labour MP
16:16
,
Tara Cobham
A Labour MP has warned “austerity is back” in response to Rachel Reeves’ spring statement.
Kim Johnson MP said in a statement that the announcement “confirms out worst fears”, citing welfare cuts.
She said: “This assault on disabled people and those in need of support is nothing short of sadistically cruel.”
My full statement on today's Spring Statement:#WelfareNotWarfare pic.twitter.com/r2bRmrEs1V
— Kim Johnson (@KimJohnsonMP) March 26, 2025
Pictured: Chancellor visits barracks with defence secretary after delivering spring statement
16:14
,
Tara Cobham
Largest group to be hit by disability benefit cuts are single women, government's own analysis shows
16:10
,
Tara Cobham
The government’s own analysis shows the largest group to be hit by Rachel Reeves’s disability benefit cuts are single women, the Women’s Budget Group has highlighted.
The feminist economic thinktank said single women make up 44 per cent of those losing out as a result of the chancellor’s welfare cuts announced in her spring statement, at an average of £1,610 a year.
Responding to today’s announcement, Dr Mary-Ann Stephenson, Director of the Women’s Budget Group, said: “We recognise the challenging situation facing the chancellor. However, the Government is making decisions that will seriously impact people’s lives up and down the country, particularly children, women and disabled people, based on forecasts that may not even materialise in order to meet its own self-imposed spending rules. This is deeply disappointing and misguided.”
Welfare cuts are 'double whammy' hitting disabled people, says Lib Dem leader
16:00
,
Tara Cobham
Welfare cuts are a “double whammy” hitting disabled people who cannot work while cutting support for their carers, Liberal Democrat Leader Ed Davey said.
The Government’s impact assessment estimated that a tightening of eligibility rules would see 800,000 people not receive the daily living component of personal independence payment (Pip) by 2029, although a “significant proportion” would keep access to the separate mobility component of the disability benefit.
As a result of the changes, a further 150,000 people will not receive carer’s allowance or the carer element of universal credit, the assessment said.
Mr Davey said: “These cuts will be a double whammy to the most vulnerable, hitting disabled people who cannot work while slashing support for the loved ones who care for them.
“Carers need more support, not less. Snatching away the little support these carers get will do nothing to help people into work; it will just put more pressure on already over-stretched carers, social care and the NHS.
“The Government is putting the big banks and gambling companies ahead of disabled people and carers. It is not just cruel, it is a false economy and I urge ministers to think again.”
Tax calculator: See how Rachel Reeves’ spring statement will affect you
15:58
,
Tara Cobham
Rachel Reeves has unveiled a £14bn package to repair the UK economy in her spring statement, as the UK's budget watchdog halved its forecast for economic growth to just one per cent.
The chancellor confirmed a squeeze on the welfare budget and cuts to the civil service, while detailing a rise in defence spending and an increase in Universal Credit (UC).
Wednesday’s statement saw Ms Reeves face criticism from the Conservatives, who claimed she had “tanked the economy” and was “reckless” with the fiscal headroom she had left herself with.
Enter your details below, including how much you earn, marital status and family details, to see how your finances will be affected:
15:56
,
Tara Cobham
Demonstrators have gathered outside Westminster Abbey after protesting about cuts to disability benefits at Downing Street during chancellor Rachel Reeves’ spring statement.
Anna Rose, 81, said she was “incandescent with rage” about the cuts.
The retiree from north-west London said: “There
