Rachel Reeves plans huge cuts to benefits and public spending in Spring Statement

Rachel Reeves, the Chancellor of the Exchequer, is planning major cuts to welfare and public spending in the upcoming Spring Statement, which is set for March 26. The government is facing serious financial problems, with the UK’s budget becoming tighter due to rising costs, high inflation, and expensive borrowing.

The money available for unexpected expenses, which was around £9.9 billion last October, has mostly disappeared. Now, to follow financial rules and avoid increasing debt, Reeves is looking at ways to cut spending, with welfare benefits being one of the main targets.

One of the biggest concerns is the growing cost of health-related benefits. Right now, these benefits cost the UK about £65 billion per year, but experts predict this could rise to £100 billion by the end of the decade. More people are claiming long-term sickness and disability benefits, especially for mental health issues, and a large number of them are young people. The government sees this as a major issue because fewer people working means less tax revenue and more spending on welfare.

Employment Minister Alison McGovern has warned that the current system is no longer affordable. She wants to get rid of the work capability assessment, which is used to decide if someone is fit for work. Instead, she wants to change the welfare system so that more people who are able to work can be helped back into jobs. The government believes that helping people find work will be a better long-term solution than simply paying out benefits.

Justice Secretary Shabana Mahmood also supports these changes, saying that people who can work should be encouraged to do so. She believes that simply giving out benefits without finding ways to help people back into employment is not a good approach. She argues that while some people truly cannot work and need support, many others could return to work with the right help.

However, these planned cuts are already facing strong opposition. Many Labour Party members and campaign groups are against reducing benefits. They argue that cutting support for people who are sick or disabled could push more people into poverty. Some experts also say that these changes might not save as much money as the government hopes because taking away benefits doesn’t necessarily mean more people will find jobs quickly.

The government’s financial experts, the Office for Budget Responsibility, are expected to release new economic forecasts soon, which will give a clearer picture of the country’s financial situation. The decisions made in the Spring Statement will be crucial in showing how the government plans to manage the country’s economy while balancing financial responsibility with public welfare needs.