Chris Elmore, MP for Ogmore, has slammed the UK Tory Government for one of their proposals to fill in the black hole created by the Mini Budget by slashing welfare support. This comes following news from the respected independent Institute of Fiscal Studies (IFS) who have determined the unfunded tax cuts for the top 1% will require £60 billion of cuts.
The IFS have noted that one option being considered is indexed working age benefits to earnings and not inflation, reducing the uplift to about 5% from 10%, to save £13bn. A reduction in public investment by a third to 2% would save £14bn, while a return of austerity across most Whitehall departments – excluding health and defence – could save £35bn.
To put the £60 billion figure in context, the Coalition Government cut expenditure by £14bn in the name of austerity. The cuts needed to plug the Tory Government’s black hole will dwarf George Osborne’s previous efforts.
In Ogmore, there are currently 4,445 women and 3,086 men claiming Universal Credit. Each person will likely lose £290 per year. This comes on top of the average increase in mortgage costs of £500 if their fixed-rate mortgage is coming to an end. 40% of all claimants of Universal Credit are already in work.
Chris Elmore, MP for Ogmore, said:
“The UK Tory Government have tanked our economy with their reckless Mini Budget. We should never forget, nor forgive, them for creating a catastrophe in Downing Street and making working people pay for it.
The proposals being floated by the UK Tory Government to slash welfare payments to pay for tax cuts to the richest 1% are not only unjust they are economically illiterate. 12 years of austerity under the Tories would be turbocharged by further cuts. The data is clear, these cuts will land on the women of Ogmore.
With mortgages set to soar by £500 and the weekly shop increasing every time you visit the supermarket, we can’t afford a UK Tory Government anymore. A UK Labour Government would run our country’s finances soundly. We wouldn’t make unfunded promises and instead would ensure we invested into communities like ours.”