Reeves targets poorest in society, say backbenchers

Rachel Reeves is facing a backlash from Labour MPs after the government's own impact assessment revealed that benefit cuts will push 250,000 more people, including 50,000 children, into poverty.

- DAVID MADDOX, KATE DEVLIN

There was outrage as the chancellor used her spring statement to announce yet more welfare cuts which, according to the Department for Work and Pensions (DWP), are now set to impact 3.2 million families.

Backbench MPs said that they would vote against the measures and angry critics contrasted the chancellor's "austerity cuts" for the poorest to recent controversies over her acceptance of £7,500 from a friend to buy clothes and free tickets to a Sabrina Carpenter concert.

Labour MP Bell Ribeiro-Addy led the charge, declaring she would vote against them - and in a call to arms - said no Labour MP should be "voting to push children into poverty".

The row came amid gloomy economic news, with the financial watchdog, the Office for Budget Responsibility (OBR), confirming it had halved the UK's growth forecast from 2 per cent to 1 per cent for the next year. And while estimates on growth were increased for following years they were still cumulatively less than predicted just six months ago when Ms Reeves gave her Budget.

The OBR also warned that tariffs set to be imposed by Donald Trump next week could wipe out those growth estimates, along with Ms Reeves's fiscal headroom of £10bn. The Institute for Fiscal Studies (IFS) also sounded the alarm, warning that extra borrowing of £50bn in the next five years will "inevitably" lead to more tax rises.

The chancellor was forced to announce extra cost saving measures yesterday after the OBR said her previously announced benefit cuts would save £3.4bn instead of the £5bn she hoped for. The health element of universal credit will be frozen for existing claimants until 2029-30 and will be approximately halved to £50 for new claimants in 2026-27.