The Work Foundation at Lancaster University responded to the Government's Spring Statement on 26 March 2025. Ben Harrison, Director of the Work Foundation at Lancaster University, commented:

“The Chancellor used her Spring Statement to double down on the Government’s intention to cut spending on welfare and support more people into work by announcing further cuts.

Welfare cuts and disability benefits

“Despite repeatedly stating that the Government is on the side of ‘working people’, making cuts of this nature risks making it significantly harder for many people to access employment. The OBR has been unable to fully certify the impact the proposed welfare cuts will have on reducing spending and getting people back to work, but the verdicts of those groups representing disabled people are clear about the substantial impact on living standards they are likely to have on some of the most vulnerable people in society.

“The £1 billion in extra funding for tailored employment support starting next year is welcome. However, cuts that heighten anxiety for disabled people – or end up pushing them into unsuitable work – are unlikely to lead to an increase in sustained employment and support economic growth. As Government consults on changes to disability benefits, it must listen to the voices of disabled people, and ensure measures don’t plunge more of those with long-term health conditions into poverty.

Slashed growth forecasts and living standards

“Against a backdrop of slashed growth forecasts, the OBR confirmed that real GDP per person is still below its 2022 level and will not recover until 2026. Many workers across the country are still struggling to make ends meet, despite strong wage growth, and recent ONS research showed that 86% of people in the UK think that the cost of living is one of the most important issues facing the country.

Promises to boost growth and deliver new jobs

“To boost growth, the Chancellor has announced further funding for housebuilding and defence and promised this investment will lead to the creation of new, high quality employment opportunities.

“But communities across the country have heard these kinds of promises from successive Governments. To deliver for local people, Government must ensure any new jobs are underpinned by fair pay, secure terms and conditions and offer flexibility to maximise the number of people who are able to access them.”