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Press Release

WBG response to Chief Secretary to the Treasury Darren Jones’ speech

There are real economic challenges facing the Government which need to be addressed, but cuts to social security are not the answer.

Responding to the Chief Secretary to the Treasury Darren Jones’ speech, WBG Director,  Dr Mary-Ann Stephenson, commented,

“There are real economic challenges facing the Government which need to be addressed. But responding to higher borrowing costs and market jitters with cuts to spending on public services or social security is shortsighted and will only damage our economy further.

“Darren Jones’ rhetoric on making efficiency savings in social security is particularly worrying. The real issue here isn’t the over-claiming of benefits—it’s under-claiming. Due to stigma, poor awareness, and intrusive assessment processes, countless people miss out on the support they’re entitled to. In fact, £19 billion in social security goes unclaimed by UK households every year, according to 2023 research by Policy in Practice.

“The Chief Secretary also announced that the Government will re-consult on the previous government’s changes to the Work Capability Assessment following the court ruling last week. This revealed that changes proposed by the previous Government  are expected to push 100,000 highly vulnerable Disabled people into absolute poverty.

“Along with Disabled people’s organisations, we have repeatedly warned that the reforms to the Work Capability Assessment, which assesses eligibility for additional Universal Credit and contributory Employment Support Allowance, will worsen the precarious financial situations of many Disabled people. Our analysis highlights that Disabled women, in particular, have borne the brunt of cuts to social security and public services, experiencing an 11% drop in living standards since 2010.

“Further eroding the incomes of one of the most vulnerable groups in society while doubling down on a punitive approach to social security is short-sighted and harmful. The sanctions regime has been proven to make it harder for claimants to get into work and has plunged vulnerable people into significant financial hardship. This approach is incompatible with the goals outlined in the Department for Work and Pensions ‘Get Britain Working’ White Paper to support Disabled people into suitable and inclusive employment. It also undermines attempts to tackle child poverty.”

“There are other options on the table for increasing revenue to the Treasury to pay for the services and welfare desperately needed after years of austerity and economic shocks. Earlier this week, Oxfam’s latest inequality report showed that the total wealth of UK billionaires increased by £35m per day in 2024. Just today, Patriotic Millionaires released results from a survey of more than 2,000 millionaires across G20 countries finding that 72% think that taxes should be raised on the super rich to help reduce the current levels of inequality and invest in public services.

“Taxing the super rich would not only help fund the services and social security that more women than men rely on, it would also help close the gender wealth gap.”

 

ENDS

 

For further comment, please contact press@wbg.org.uk