Chancellor's Deeper Welfare Cuts Tipped to Impoverish 50,000 More Children

Tensions are rising within the Labour Party as the true cost of welfare reforms becomes clear.
According to the government's own impact assessment, 50,000 more children will fall into relative poverty following changes to health and disability benefits.

The Department for Work and Pensions (DWP) released the analysis today, confirming that a staggering 250,000 additional people will be living in relative poverty after housing costs as a direct result of the newly announced cuts. The reforms were introduced last week by Welfare Secretary, Liz Kendall.

The news has significantly darkened the mood among Labour MPs, many of whom are voicing concern in private. Some have reportedly described the cuts as "cruel" and "very difficult" to justify, especially amid a cost-of-living crisis that continues to hit the most vulnerable.

One Labour MP from the 2024 intake, considered a rising star, was blunt: “No one is being honest here. We are doing this to make the numbers add up for the OBR.” Despite their criticism, they acknowledged the need to address the growing cost of benefit claims.

Ministers Defend the Cuts

In response to the backlash, government ministers have argued that the impact figures fail to account for supportive measures, such as:

• Free breakfast clubs for children

• Falling childcare costs

• Support to help some families transition into work

It’s worth noting, however, that many recipients of Personal Independence Payments (PIP) are already employed, raising questions about how effective these employment support measures will be.

Sources close to Liz Kendall defended the reforms, highlighting the £1.4 billion investment in employment support—the largest such initiative in years—funded by the Chancellor to help people re-enter the workforce.

As the Labour-led welfare cuts take shape, internal divisions and growing unease are beginning to surface. With child poverty projected to rise and hundreds of thousands affected, the party is walking a tightrope between fiscal responsibility and social justice.
Source: Sky News
Image: BBC