By Ethan Davies – Local Democracy Reporter
ANDY Burnham has branded Rachel Reeves’ benefits cuts as ‘the wrong choice’ after the government’s own figures show reforms could push 250,000 into poverty.
The Chancellor announced in her Spring Statement on Wednesday (March 26) changes to the welfare system designed to save £5B by 2030. She is targeting cuts to the personal independence payment (PIP), carer’s allowance, and universal credit.
Government statistics show 800,000 people will miss out an average of £4,500 annually from PIP cuts, a further 150,000 people will lose carer’s allowance, and almost 3M will also lose out from changes to Universal Credit — although 3.9M households are expected to gain £265 a year, on average.
Her plans have sparked a backlash, including from Labour MPs.
Now, the Greater Manchester mayor has joined them, with Mr Burnham believing ‘Rachel Reeves is right to say the benefits system needs a major overhaul’ as ‘it often leaves people trapped in poverty as people fear interacting with the system’.
“However,” he added on BBC Radio Manchester, “what the Greater Manchester Disabled People’s Panel say to me is already there are many, many disabled people in Greater Manchester in punishing poverty as a result of the system.
“It may be that some people can be supported towards work but I would struggle to believe there would be no detrimental impact that makes the lives of disabled people harder. This feels like the wrong choice to me.
“There’s a case for reform but the package announced… it looks like the wrong choice.”
When pressed if the government should be taxing the super-rich more, Mr Burnham replied: “If you look at how British society, and the world, changed since the 1980s and 1990s the gap between rich and poor is astronomical now.
“I do have sympathy for what’s being said there. It’s not about an old-fashioned ‘tax the rich until the pips squeeze’.
“We over-tax people’s work and we under-tax people’s wealth. I am not sure the balance is right.
It is difficult in government. It’s not easy to balance the books and make things work but I do think we need to proceed with real caution on benefits cuts.”
Oldham MP Debbie Abrahams, who chairs the Work and Pensions Committee, has also expressed concerns over the move.
She said: “All the evidence is pointing to the fact that the cuts to health and disability benefits will lead to increased poverty, including severe poverty, and worsen health conditions as well.
“How will making people sicker and poorer help in terms of driving our economy up and people into jobs?”
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