3.2million families – some current recipients and some future recipients – will financially lose out as a result of this package with an average loss of £1,720 per year compared to inflation.
Over THREE MILLION benefits claimants will be caught up in the incoming Department for Work and Pensions ( DWP ) cuts. 3.2million families – some current recipients and some future recipients – will financially lose out as a result of this package with an average loss of £1,720 per year compared to inflation.
An impact assessment from the DWP shows 370,000 current recipients to lose entitlement to PIP and 430,000 future PIP recipients who do not get the PIP they would otherwise have been entitled with an average loss of £4,500 per year.
It also adds 250,000 people could be pushed into relative poverty, including 50,000 children, after housing costs and 800,000 will lose money from PIP according to the Office for Budget Responsibility and almost half will be from reassessments.
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Three million will lose money from changes to the main health element of universal credit losing £500 a year for existing claimants and £3,000 for new claimants. £500million will come out of the carers benefits bill as 150,000 lose carers’ allowance or Universal Credit care element.
3.8million families – some current Universal Credit recipients and some future recipients – will financially gain from this package with an average gain of £420 per year compared to inflation.
Asked about the DWP analysis saying the benefit cuts will push another 250,000 people into poverty, Labour Party Chancellor RReeves said this would not happen, because that analysis did not take account of the impact of more people getting into work.
She said: “I am absolutely certain that our reforms, instead of pushing people into poverty, are going to get people into work. And we know that if you move from welfare into work, you are much less likely to be in poverty.
“That is our ambition, making people better off, not making people worse off, and also the welfare state will always be there for people who genuinely need it.”
She said: “NHS waiting lists down for five months, rolling out free breakfast clubs in primary schools, the national living wage going up by £1,400 pounds from next week, 2.5% of GDP spent on defence, including £2.2bn pounds invested next year, record housebuilding, the highest level of housebuilding for 40 years. That’s the change that we promised, that’s the change that we are delivering.”