Keir Starmer is facing criticism as Labour's stringent policies on benefits are reportedly costing the UK economy billions and intensifying poverty levels. The charity Trussell warns that the government's planned cuts, alongside their opposition to the two-child limit, could lead to widespread hunger affecting millions. With 9.3 million people in Britain facing hardship, there are dire implications for economic output and public services. The charity's report indicates that the government's approach to welfare could impose grave human costs and hinder potential growth, with Labour MPs gearing up for potential rebellion against benefit reductions outlined by the Chancellor.
The UK's elevated levels of poverty mean the economy misses out on more than £38 billion annually in potential output, as warned by the anti-poverty charity Trussell.
Trussell underscores that any narrow savings on welfare should be viewed against the backdrop of significant wider costs to public finances and personal wellbeing.
The warning comes as Labour MPs are prepared to rebel against £5 billion benefit cuts put forth by Chancellor Rachel Reeves amidst rising poverty levels.
Despite calls to abandon the two-child limit, ministers are ruling out its scrapping, heightening concerns over soaring child poverty, projected to reach record highs.
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