A BBC Question Time guest slammed Rachel Reeves’s suggestion that people will feel “better off” under Labour – as he fumed at her Budget for hitting some of society’s poorest. The Chancellor insisted at her spring statement last week that people across the UK would be on average £500 a year better off by the end of this parliament compared to under the previous government.
But Plaid Cymru’s Rhun ap Iorwerth hit back at her suggestion following the start of what has been dubbed “awful April”, when several bills have increased. Appearing on BBC’s Question Time, he said: “Who does Rachel Reeves think she’s kidding? Of course people won’t be better off. I’ve had that water bill up 30% as well and I’ll absorb that, but there are people that aren’t going to be able to absorb that.
“But let’s remember what we heard from Rachel Reeves only last week. Not only will people not feel £500 better off but this Labour Chancellor chose to attack some of the most poor and most vulnerable people in our communities with a series of cuts to welfare.”
Ms Reeves announced nearly £5billion in benefit cuts by the end of the decade to restore a narrow buffer of fiscal headroom, with £1billion to be invested in employment support to help people back to work.
The changes, which drew the ire of opposition politicians and charities, will hit three million families on incapacity benefits and see personal independence payments lowered for 800,000 claimants.
Plaid Cymru’s leader agreed that the nation’s welfare bill needed to be smaller.
On Thursday, Sir Keir Starmer acknowledged the cost-of-living crisis was ongoing and that people were feeling the pressure of rising household bills as the Government insisted it was taking action to give workers “more money in their pockets”.
The Prime Minister insisted the rising national living wage and the Bank of England’s interest rate cuts were helping household finances despite the mounting costs.
There will be council tax and energy bill hikes for millions of households at the start of April.
Sir Keir said: “I think for most people, they would say the cost-of-living crisis is ongoing, and they feel the pressure financially.
“That’s why it’s so important we make good on our pledge that people would feel better off and the national living wage going up today by an average of £1,400 is going to affect millions of people, so in their pay packet this month, and obviously for months to come, they will now be getting more money.
“That’s alongside the other work we’ve done – interest rates have been cut three times since we’ve had a Labour Government, so anybody with a mortgage knows that the rates are coming down, and of course, on average, wages going up now more quickly than prices.
“I acknowledge that with bills coming in, people see that rise and that is a pressure. That is why it’s so important we deliver on the national living wage, to make sure people are better off – £1,400, quite a significant amount of money for millions of workers.”