The UK government’s decision to reverse proposed cuts to Universal Credit and Personal Independent Payments (PIP) will result in significant improvements for families living in poverty.
According to a new report from the Department for Work and Pensions (DWP), around 50,000 children are expected to be lifted out of relative poverty by 2030. The move comes after intense opposition from Labour MPs, which forced a re-evaluation of the welfare reform plans.
This reversal marks a significant shift in the government’s welfare strategy and could provide much-needed relief for low-income families. The decision, which was made in the face of backlash from within the ruling party, represents a rare retreat by ministers on controversial welfare cuts.
Government’s Reversal After Backlash
The government’s welfare reform package initially aimed to cut £5 billion annually from the budget by restricting access to PIP and Universal Credit elements.
The proposed changes would have meant a reduction in vital support for many individuals, including those with disabilities and families reliant on Universal Credit. However, this plan was met with fierce resistance, notably from over 100 Labour MPs who pushed back with a successful amendment to block the cuts.
Rachael Maskell, the Labour MP for York Central, called the proposals “Dickensian” and led the charge in opposing the reforms.
As a result of the political pressure, ministers were forced to scrap the cuts ahead of a key parliamentary vote. The DWP’s new analysis of the revised welfare policy predicts that the number of children living in relative poverty will decrease significantly, with 50,000 fewer children expected to be in poverty by 2030.
New Welfare Measures to Alleviate Poverty
In the wake of the government’s U-turn, new legislation is progressing through Parliament to address issues within the Universal Credit system.
Among the key changes are increases in the Limited Capability for Work Related Activity (LCWRA) component, which is aimed at providing additional support for those unable to work due to illness or disability. These adjustments, along with a rise in the standard rate of Universal Credit, are expected to play a role in reducing poverty levels among families.
The changes represent a shift from austerity measures that had previously been a hallmark of the UK government’s approach to welfare. Although the government has ruled out any immediate tax increases, Chancellor Rachel Reeves is expected to address fiscal constraints in her upcoming autumn budget.
The focus now appears to be on easing the financial burden on the most vulnerable, with these reforms offering a promising step forward for families struggling to make ends meet.
