Research from the Resolution Foundation suggests that low-income families could lose an average of £500 annually by 2030 due to the UK chancellor’s spring statement. The think tank claims that weakened economic growth in the next five years, combined with benefit cuts that disproportionately affect low-income households, could lead to these financial losses.
The Resolution Foundation has stated that approximately 3 million families relying on incapacity benefits will be affected by these measures. About 800,000 claimants could see their personal independence payments reduced, which is set to save the government £8.1 billion by 2029-30.
Ruth Curtice, the chief executive of the Resolution Foundation, has described the future for living standards as “bleak,” owing to the UK’s poor economic performance and policies that particularly affect those on modest incomes. She mentioned that 10 million working-age households in the bottom half of the income distribution could see their incomes decrease by £500 over the life of the current parliament.
Source: https://www.theguardian.com/uk-news/2025/mar/27/rachel-reeves-statement-poorest-500-a-year-worse-off-thinktank
