UK benefit cuts could cause big problems — Resolution Foundation

According to a study by the Resolution Foundation think tank, the cuts in social benefits proposed by the Labor Party will increase unemployment in the UK. This will happen despite the recent statements of the country's government about increasing the number of working citizens in the kingdom.

In March, during the so-called Spring Statement, Chancellor Rachel Reeves announced a projected annual saving of $6.4 billion by 2030 through reductions in social benefits.

However, according to Resolution Foundation analysts, these figures are far from reality, and the actual number of employed citizens may increase by only 60 thousand. Moreover, according to the official analysis of the government, the proposed changes will reduce the level of income of 700 thousand British families. Because of this, more than 250 thousand residents of the country are at risk of losing their income completely.

Reeves's social policy reforms have sparked conflicts within the Labour Party, which traditionally advocates for poverty reduction. Several dozen MPs have threatened to sabotage the vote on the reforms in hopes of securing concessions from the government, Bloomberg reports.