Labour MPs have accused the chancellor of implementing “devastating” and “unacceptable” welfare cuts after an analysis by the government revealed that they would affect more than 3 million households and push 250,000 people into poverty. The impact assessment, published as part of Rachel Reeves’s spring statement, showed that 3.2 million households would each lose an average of £1,720 a year. The cuts would particularly affect those eligible for personal independence payment (Pip), with 800,000 individuals expected to lose an average of £4,500 a year.

Backbench MPs criticized the government’s assessment and expressed concerns about the welfare policy’s potential to exacerbate poverty and worsen health conditions. Many are considering voting against the changes when they come up for a Commons vote in May. The policy faces criticism for purportedly undermining efforts to support the economy and tackle unemployment by impacting the already vulnerable, with some frontbenchers reportedly considering joining the opposition.

Carers UK has raised concerns about the cuts to carer’s allowance, which would affect 150,000 individuals and represent the most substantial cuts in decades. The charity warns of increased anxiety for carers and their families. The average loss of £4,500 a year from Pip, coupled with the loss of £4,250 a year in carer’s allowance, could amount to a yearly loss of at least £8,740 for some households, further affecting the over 1 million unpaid carers already living in poverty.

The Office for Budget Responsibility (OBR) labeled the £4.8 billion cuts as the largest welfare savings package since July 2015, drawing criticism from Labour MPs who are frustrated with the OBR’s influence on fiscal policy decisions and their impact on constituents. Darren Jones, the Treasury chief secretary, fueled further anger by defending the cuts with an analogy comparing them to children’s pocket money, which was widely condemned as insulting. The parliamentary Labour party is increasingly vocal about challenging the OBR and the fiscal rules, which they argue are driving constituents into poverty and eroding trust in the government’s ability to serve their needs.

Source: https://www.theguardian.com/uk-news/2025/mar/26/labour-mps-condemn-rachel-reevess-unacceptable-welfare-cuts