Government 'wrong to balance books on backs of low-income families'

28 Mar 2025

Responding to Chancellor Rachel Reeves' recent Spring Statement, think tank the Resolution Foundation stated that balancing the books 'shouldn't be done on the backs of low-income families'.

The Foundation said that due to a deterioration in the outlook for the public finances a 'fresh fiscal consolidation' was needed in the Spring Statement to meet the Chancellor's fiscal rules.

However, with £4.8 billion in savings coming from welfare changes, it predicts that 3.2 million families will be, on average, £1,700 worse off.

The Resolution Foundation labelled Ms Reeves' approach as 'unbalanced', and stated that it risks causing 'significant damage' to many families' living standards.

Ruth Curtice, Chief Executive of the Resolution Foundation, commented: 'While the Chancellor was right to balance the books, she was wrong to do so on the backs of low-to-middle income families, on whom two-thirds of the welfare cuts will fall. Over three million households will be worse off as a result of welfare changes.'