SPRING BUDGET – Government welfare cuts will push people further into poverty

 
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27th March 2025

MEDIA STATEMENT

SPRING BUDGET – Government welfare cuts will push people further into poverty

Muslim Women’s Network UK is deeply concerned about the devastating impact of the disability benefit cuts announced in the Chancellor’s Spring Budget Statement. It is appalling that the government plans to halve the Universal Credit health element allowance for new claimants and then freeze it. Further reductions in disability support, including stricter Personal Independence Payment (PIP) criteria, will result in many losing their entitlement upon reassessment.

MWNUK CEO Baroness Gohir said: “The government’s own impact assessment found that these cuts will push 250,000 more people into relative poverty—including 50,000 children—yet it has chosen to proceed regardless. Women will bear the brunt of these cuts, as they are often the primary caregivers for children and disabled family members. These measures will push disabled individuals into lower living standards and place women in precarious financial positions, forcing them to stretch already limited household budgets. This hardship will come on top of existing economic challenges experienced by women, such as lower pensions due to career breaks for caregiving, lower wages, and restricted support under the child benefit cap.”

The Institute for Fiscal Studies (IFS) warns that women also face a heightened risk of job losses due to the rise in employer National Insurance contributions introduced by the Chancellor in the previous budget. The sharpest increase in labour costs will impact sectors that employ the lowest-paid workers, including charity, hospitality, childcare, and social care—industries where women are disproportionately represented. As businesses struggle with higher wage bills, job cuts in these sectors are increasingly likely.

Families driven further into poverty will be forced to skip meals and go without essential items. Black, Asian, and minority ethnic families will be disproportionately affected, as they already experience higher rates of poverty and lower household incomes. It is unacceptable that the government continues to target the most vulnerable in society instead of ensuring the wealthy contribute their fair share. First pensioners had their winter fuel payments cut and now the disabled have been targeted.

These budget cuts will cause suffering to millions of women, children, and disabled individuals. We urge the Chancellor to reverse these immoral welfare cuts.


Additional Information

· Media enquiries can be directed to: contact@mwnuk.co.uk or 0121 2369000

· Muslim Women’s Network UK is a national charity: https://www.mwnuk.co.uk


 
 

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