07-07-2025
Welfare reforms to cost ‘hundreds of millions of pounds for two years'
Welfare reforms will cost the government hundreds of millions of pounds for the next two years, updated impact assessments have found.
An increase in the standard rate of universal credit (UC) has wiped out savings from cuts to incapacity benefits, but does mean that 50,000 people will now be lifted out of poverty by the changes.
After Sir Keir Starmer suffered the biggest rebellion of his premiership in a chaotic welfare vote last week, ministers are hoping to win round some of the 49 backbenchers who voted against the benefits reform bill.
The most contentious elements of the bill have been scrapped after a last-minute climbdown, which prompted uproar in the Commons and wiped out an estimated £4.5 billion of savings the Treasury was hoping to make from reforms. Ministers have now promised no reform before a review in consultation with disability groups.
