Over three million families are set to face financial setbacks as the UK government implements substantial welfare reductions, reveals an official analysis. On average, affected households will endure an annual loss of £1,720.
The detailed government review of the recent benefit cuts, notably a severe reduction in universal credit payments, indicates that individuals receiving disability allowances will suffer the most significant financial impact.
Consequently, an additional 250,000 people are predicted to fall into relative poverty by the 2029/30 fiscal year, including 50,000 children, exacerbating the current figure of 14.3 million people living in poverty.
According to the analysis, approximately 370,000 current recipients of personal independence payments will be stripped of this benefit, and another 430,000 individuals who would have qualified in the future will now be ineligible. These groups are expected to lose an average of £4,500 per year.
Chancellor Rachel Reeves announced these sweeping benefit reductions during her spring statement on Wednesday, where she disclosed the need for an extra £14 billion in savings to adhere to her fiscal rules.
