New changes to the welfare bill will result in 50,000 fewer people living in poverty by 2030, according to an updated assessment. The prime minister abandoned cuts to the personal independence payment to prevent a Labour rebellion. Initially, proposed reforms would have pushed 250,000 into poverty; however, concessions reduced this figure to 150,000. The government's decision not to implement the cuts was crucial, but future financial challenges remain, and tax rises including a potential wealth tax may be on the horizon.
The updated impact assessment by the Department for Work and Pensions found that changes to the welfare bill will lift 50,000 people out of relative poverty after housing costs by 2030.
Initially, the proposed welfare reforms were expected to push an additional 250,000 people into poverty, but after government concessions, this estimate was reduced to 150,000.
The abandonment of cuts to the personal independence payment was a crucial move to avoid a significant Labour rebellion in the House of Commons.
Despite the welfare U-turn, the chief secretary to the Treasury suggested that future tax rises, including the possibility of a wealth tax, may be necessary.
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