In her Spring Statement, Chancellor of the Exchequer, Rachel Reeves, declared a rise in Universal Credit standard allowance to reform the welfare system.
Beginning her address, Ms. Reeves stated she was "proud" of the government's achievements post-election.
She informed MPs: "This Labour government was elected to bring change to our country. To provide security for working people and to deliver a decade of national renewal. That work of change began in July – and I am proud of what we have delivered in just nine months."
Praising the government's efforts, she added: "Restoring stability to our public finance, giving the Bank of England the foundation to cut interest rate three times since the general election. Rebuilding our public services with record investment in our NHS bringing waiting lists down for five months in a row and increasing the National Living Wage to give three million people a pay rise from next week.
“Now our task is to secure Britain’s future in a world that is changing before our eyes," she continued, reports the Manchester Evening News.
Reeves reported to parliament that, as part of vital reforms to a "broken" welfare system, the Universal Credit standard allowance is set to increase from £92 per week in 2025/26 to £106 per week by 2029/30.
Yet, she also signified a downside stating the Universal Credit health element would be reduced by half and remain static for new applicants.
"The OBR (Office for Budget Responsibility) have said that they estimate the package will save £4.8 billion in the welfare budget," she explained. "Reflecting their judgments on behavioural effects and wider factors.
"This also reflects final adjustments to the overall package, consistent with the Secretary of State's statement last week and the Government's Pathways to Work Green Paper.
"The universal credit standard allowance will increase from £92 per week in 2025-26 to £106 per week by 2029-30, while the universal credit health element will be cut by 50% and then frozen for new claimants."
Rachel Reeves highlighted the significant impact of the Government's planning changes, stating they will bring about the "biggest positive growth impact" ever seen in an OBR forecast.
She elaborated: "There are no shortcuts to economic growth. It will take long-term decisions. It will take hard yards. It will take time for the reforms we are introducing to be felt in the every day economy. It is right that the Office for Budget Responsibility consider the evidence and look carefully at measures before recognising a growth impact in their forecast."
She further stated: "We published changes to the National Planning Policy Framework, driven forward tirelessly by the Deputy Prime Minister, reintroducing mandatory housing targets and bringing "grey belt" land into scope for development. The OBR have today concluded that these reforms will permanently increase the level of real GDP by 0.2% by 2029-30, an additional £6.8bn in our economy and by 0.4% of GDP within the next 10 years an additional £15.1bn in our economy.
"That is the biggest positive growth impact that the OBR have ever reflected in their forecast, for a policy with no fiscal cost. And taken together with our plans to increase capital spending this Government's policies will increase the level of real GDP by 0.6% in the next 10 years."
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English (United States) ·