Millions of disabled and long-term sick claimants could see their benefits slashed by as much as £1,200 a year as Rachel Reeves pushes ahead with major welfare cuts, a leading think tank has warned. With the UK economy under growing pressure, the government is looking to cut around £5 billion from working-age benefits, with disability and incapacity payments in the spotlight. The Institute for Fiscal Studies (IFS) has sounded the alarm, warning that these cuts could mean a 16% reduction in payments, hitting millions of vulnerable people.
The warning comes as the Organisation for Economic Cooperation and Development (OECD) downgraded UK growth forecasts in response to global economic uncertainty, including the impact of Donald Trump’s new trade tariffs. Despite this, the government insists it is not being forced into making benefits cuts to balance the books.
