Opposition parties slam government’s ‘cruel’ welfare cuts

Penny Wrout accused Labour of ‘turning its back on a fairer society’. Photograph: Josef Steen / free for use by LDRS partners

Oppositon councillors in Hackney have condemned the Labour government’s new welfare cuts as “deeper austerity” – as the borough’s mayor reasserted the Town Hall’s committment to tackling poverty.

Following the latest round of economic forecasts, Chancellor Rachel Reeves this week gave her spring statement to the House of Commons, confirming higher defence spending and changes to the benefits system.

Reacting to the announcements, Mayor Caroline Woodley sought to assure Hackney residents that things were moving in the right direction.

Although the Chancellor’s “challenging” decisions showed the “severe financial constraints the government is working under”, Woodley said, other funding for local government had put the council on “stable footing”.

“What is clear is that it will take time for the government to reverse more than a decade of underinvestment in public services.

“We can see a strong direction of travel in terms of housing ambition, and also welcome the continuation of essential crisis support that will help us to meet some of the urgent needs faced in Hackney.”

She pointed to the recent £2bn injection of grant funding for 18,000 new social and affordable homes, of which the council will attempt to secure as much as it can from City Hall.

The mayor also highlighted the £25m support package received from the government late last year, which she said had helped keep Hackney’s council tax reduction scheme in place.

But Woodley nevertheless admitted the current levels of financial support would not undo the impact of the previous decade of austerity on public services.

“Hackney Council and my administration remain ambitious for our borough, tackling the housing crisis, poverty and climate change,” she said.

The mayor did not explicitly address the Department of Work and Pension (DWP)’s decision to cut deeper than the £5bn squeeze to the country’s welfare bill already announced.

Work and pensions secretary Liz Kendall last week confirmed a slew of reforms to the benefits system, which include changing the eligibility criteria for Personal Independence Payments (Pip) given to people with disabilities who cannot work.

But after the Office for Budget Responsibility (OBR) said these proposed savings would in reality only deliver £2.9bn, the Chancellor declared she would claw back a further £500m from the department.

Hackney Mayor Caroline Woodley. Photograph: Hackney Council

Ministers have emphasised that welfare cuts are being implemented alongside the government’s wider strategy of getting more people into work, including investing £1bn in employment support measures.

But disability campaigners have called the new restrictions to Pip “immoral and devastating”, with charity Scope arguing the reforms would have a “catastrophic impact on disabled people up and down the country”.

The government’s own impact assessment, released on Wednesday, revealed the cutbacks would affect 3.2 million households and plunge 250,000 people into relative poverty by 2029/30.

Hackney’s mayor insisted the council was well-placed to support the government’s employment drive, pointing to the recent launch of its Green Skills Hub.

She also highlighted that the Department of Work and Pensions (DWP) had now confirmed Hackney is to receive close to £5m in household support funding (HSF), which goes towards helping residents in financial straits.

However, a report from the borough’s finance chief Cllr Robert Chapman and employment lead Cllr Carole Williams states this year’s funding was “slightly lower” than 2024/25, “meaning a reduction in most funding streams”.

The same document clarifies that the borough received £670,370 – roughly 12 per cent – less than last year.

Ex-Labour councillor Penny Wrout, now one of three Independent Socialists on the opposition benches, said the HSF allocation would not shield residents from the impact of more welfare cuts.

Speaking to the Citizen, she said: “We have to be careful with Labour politicians playing fast and loose with figures to make it look as though the government is providing sufficient funds for Hackney.

“The £25 million the mayor refers to is simply an increase on an old figure from the previous Tory government, and simply doesn’t begin to touch the sides.

“It still leaves Hackney having to pull millions from reserves just to avoid setting a negative budget in the coming year – in addition to a host of cuts the council is having to make, which will start to bite imminently.”

The Independent Socialist group said the Chancellor’s statement showed Labour had “turned its back on creating a fairer society” and was instead pursuing “deeper austerity”.

“[The government] is hoping cuts to the most vulnerable among us will help fund growth through increased capital spending, defence spending and a building plan. A classic ‘cuts today for (uncertain) jam tomorrow’,” the group said in a statement.

“What is clear is that Labour’s spending programme will not benefit families and individuals bearing the biggest brunt in welfare cuts.”

They added that the announcement means there was now “less hope for breaking the cycles of financial hardship for thousands of Hackney residents”.

Hackney Greens’ co-leader, Cllr Zoë Garbett, said the Chancellor’s “cruel, shorted-sighted agenda” would punish the most vulnerable and widen inequality in the borough.

“Slashing support for those unable to work and disabled people, is morally indefensible.

“The wealthy should be paying their fair share, not being shielded while essential services are gutted.”

The Hackney Conservatives were approached for comment.

In her statement, Mayor Woodley added that the council would soon bring its local economic development plan and circular economy strategy to cabinet for approval.

“[This will] demonstrate how we will shape inclusive growth locally, working together for a greener, healthier and fairer Hackney for all.”