A new report has revealed that the UK’s most vulnerable households are set to be £500 worse off annually due to Labour’s Spring Statement.
The research, conducted by the Resolution Foundation, delivers a sharp blow to the claim that Labour would make families £500 better off.
Instead, it paints a bleak picture for low-income households already grappling with rising living costs.
The report shows that the second poorest fifth of households will see their incomes fall by 1.5% due to tax and benefit changes.
By contrast, the richest fifth will only see a 0.6% dip, widening the inequality gap further.
This comes despite Labour’s repeated pledges to reduce child poverty and support struggling families.
Startlingly, the UK Government’s own Department for Work and Pensions admits its welfare cuts will push 250,000 people into poverty.
Among those are 50,000 children, highlighting a grim future for many young people already living on the edge.
The figures raise urgent questions about Labour’s commitment to social justice and economic fairness.
Many are now accusing the party of failing to live up to its pre-election promises.
SNP MSP Collette Stevenson said the findings expose a major betrayal of trust by the Labour Government.
She stated that families were promised they’d be £500 better off, but are instead facing a financial loss of the same amount.
She highlighted that not only will the poorest suffer most, but the effects will ripple through to Scotland’s budget too.
This is because reductions in reserved welfare spending have a direct impact on devolved funding through the Barnett Formula.
Stevenson urged Labour to “do the right thing” and reverse the cuts before more damage is done.
She warned that continuing on this path would leave even more families unable to cope.
The timing of the report, released in the wake of the Spring Statement, has added fuel to an already fiery debate.
Critics argue that Labour’s approach risks entrenching poverty rather than alleviating it.
With inflation still squeezing household budgets, the extra £500 loss will hit hard.
Campaigners are now calling for a rethink of the entire welfare strategy.
There are growing concerns that promises made in opposition have been quietly dropped in power.
As more data emerges, pressure is mounting on Labour to explain how its policies align with its social justice agenda.
The Resolution Foundation report adds to a chorus of criticism that the poorest are being asked to carry the heaviest burden.
Many will now be watching closely to see if Labour changes course or digs in.
For those on the breadline, every pound counts – and £500 could be the tipping point.
