UK Budget Boosts Benefits, Pensions by Over £15 Billion

Chancellor Rachel Reeves is expected to announce significant increases in benefits and state pension spending, totaling more than 15 billion pounds, in her Budget on Wednesday, while introducing tax measures to address a substantial fiscal shortfall amid rising government borrowing and economic slowdown.

The centerpiece of the Budget will be the full abolition of the two-child benefit cap, which limits payments to the first two children in most households on Universal Credit. Officials estimate the change will cost 3 billion pounds annually and benefit hundreds of thousands of children by reducing poverty levels. This decision follows months of pressure from Labour MPs and comes after earlier plans for a partial removal were abandoned. Reeves has described the move as aligned with Labour's commitment to supporting families facing the cost of living.

Working-age benefits, including Universal Credit, Personal Independence Payment and child benefits, will rise by 3.8 percent from April, in line with September's inflation rate. This adjustment, projected to cost up to 6 billion pounds, will affect millions of claimants. For instance, the highest weekly PIP awards for daily living...