Chancellor Rachel Reeves is set to deliver her second Autumn Budget for the Labour government on November 26, unveiling a significant financial plan that includes a major crackdown on welfare fraud.
Key Savings and Policy Shift
A central pillar of the budget will be an extra £1.2 billion in savings pledged by intensifying the fight against fraudulent benefit claims. This initiative is projected to run up to the year 2031.
In a move that has been widely anticipated, the Chancellor is also expected to scrap the controversial two-child limit on benefits. This policy has long faced fierce criticism for its role in exacerbating child poverty across the nation.
Political Reactions and Demands
The budget announcements have already drawn strong reactions from across the political spectrum. Conservative leader Kemi Badenoch has accused the government of planning to raise taxes, stating, “On Wednesday, Starmer and Reeves are going to increase your taxes to fund more welfare.”
Meanwhile, voices from the left, including Green Party leader Zack Polanski and Unite union’s Sharon Graham, are pushing for the Chancellor to go further. They are demanding the imposition of far tougher taxes on wealth to address funding needs.
Treasury Response and Broader Budget Aims
Defending the government's position, a Treasury source told the Guardian, “We will never tolerate fraud, error or waste in the welfare system – every pound of taxpayers’ money should be spent with the same care with which working people spend their own money.”
The source elaborated that the Chancellor is “doubling down” by extending targeted case reviews. This approach aims to save billions, ensure support reaches those who genuinely need it, and safeguard public money for investment in essential services.
The overarching goal of this budget remains tackling the £40 billion black hole which the Labour government states it inherited from the previous Conservative administration.
Reeves has also reiterated commitments to pensioners, saying, “Whether it’s our commitment to the triple lock or to rebuilding our NHS to cut waiting lists, we’re supporting pensioners to give them the security in retirement they deserve.”
Prime Minister Sir Keir Starmer expressed his pride in the Chancellor, noting, “I strongly believe that women in public life get much more criticism and abuse than men … I’m really proud to have the first female chancellor ever. I’m really proud that we’ve got a female chancellor who’s doing a really good job.”
