Reeves hits Workers With more Tax giving  £14b to to jobless families whilst clobbering average workers

 

 

 

Rachel Reeves is bracing for a political firestorm as her 2025 Budget delivers a £14,000-a-year benefits windfall to Britain’s biggest jobless families while clobbering average earners with higher taxes to foot the bill.

The Chancellor’s flagship move — scrapping the two-child benefit cap — will hand vast payouts to 18,000 families with six or more children, according to DWP figures. Those households will see annual support jump by more than £14,000, part of a £3.5bn-a-year expansion of the welfare state.

 

In total, Reeves is expected to hike taxes by £25bn, blaming the Tories, Brexit and Trump’s tariffs for throttling the economy. But her critics say the Budget is simply redistributing from workers to welfare on an unprecedented scale.

 

Analysis from the Adam Smith Institute shows the average earner will hand over £1,970 this year just to fund welfare — more than any other single area of public spending. Workers on the median salary of £39,039 will contribute more than £1,000 towards the NHS on top of that.

 

The two-child limit currently caps means-tested benefits at the first two children, costing affected households about £3,455 per additional child. Nearly 470,000 families are hit by the policy, including almost 200,000 where no one works. Over 18,000 have six children or more.

 

Reeves insists her Budget is about “fairness,” vowing not to return to austerity while promising relief on the cost of living. She trumpets frozen rail fares, free school breakfast clubs and a higher National Living Wage — but admits voters are “angry at unfairness” across the economy.

 

Yet the backlash is intensifying. Tory policy chief Neil O’Brien accused Reeves of caving to Labour MPs who had “worked out she can be pushed around.”
“You’ll see some families receiving very large sums from the taxpayer while she raises taxes on everyone else,” he warned. “It destroys her claim that this is all forced on her by Brexit or the Tories. She’s choosing to raise taxes to spend billions more on benefits.”

 

Critics say removing the cap risks gutting work incentives. A single parent with three children currently receives £20,978 in support; without the cap this would soar to £24,491 — more than the £21,807 take-home pay of someone working full-time on the minimum wage.

 

As Reeves prepares to sell her “fair and necessary choices,” supermarkets warn that her separate U-turn on business rates will push food prices even higher, and tourists face a new £2-a-night levy under Labour plans for an English holiday tax.

 

With backbenchers restless, costs rising, and voters sceptical, Reeves’s first Budget is shaping up as a high-stakes experiment in tax-and-spend politics — and millions of workers are about to pay for it.

 

Key Takeaways

• Scrapping the two-child cap hands £14k-plus yearly payouts to the largest jobless families.

• Reeves will raise taxes by £25bn, costing the average earner nearly £2,000 for welfare alone.

• Critics warn the Budget boosts benefits while eroding work incentives and squeezing households.

 

Source: Daily Mail

 

 

 

Cut taxes to give working people more money 

Excellent news, the Tory’s mendacious two child cap has been binned:

 

”In a joint statement Helen Hayes and Debbie Abrahams, the chairs of the education and work and pensions select committees, said the move would “immediately lift hundreds of thousands of children out of poverty and stop even more being drawn into it”.
 

Where the DM gets its £14 Billion number from is a mystery.

 

https://www.theguardian.com/uk-news/2025/nov/26/labour-mps-celebrate-end-of-two-child-benefit-cap-in-rachel-reeves-budget

"I won't be back for more" she said.

 

https://www.tax.org.uk/no-more-tax-increases-in-this-parliament-chancellor-tells-mps

 

 

Well, apart from the 26 Billion in the very next budget.

 

Lying incompetent charlatans.

This budget is about survival for Reeves and Starmer - not in the interests of the country. 

 

The UK has massive tax reciepts - the problem it has is the massive public waste. 

 

If you think corruption is the sole domain of dosspot regimes, or countries in the African or Asian contintent think again. I've personally seen local experience over in the UK at the sheer waste and corruption.

 

There was an award by the central government to award a 300,000 contact hundred thousand to create a new little lane to reduce traffic for residents on a street. The local council then spent nearly half of that on consultation, enviromental impacts, and then the construction itself - everyone from the enviromental impact on the soil, to the actual construction team were friends with the local council team. No independent firm stood a chance - they submitted lower offers (suspiciously how did they know what the lowest offer would be) - but when it was finished it was nearly double the price that they began with. So in total of a small £300,000 project i would say no more than £40,000 was actually spent on carrying out the actual project. The rest was waste, corruption, gravy train. 

 

Nothing can ever be built in the UK by the central government (eg the way Dubai or China can) - because they cannot get a grip (or do not want to) get a grip on the corruption. 

 

We see this in India, Pakistan, even in Thailand - but it happens massively in the UK. Go see any major project the government have tried to build and how over budget it goes. Go see the corruption during covid - which woke people up at the sheer balls of it. 

 

I just have one question.

 

How come British Pound it not at 29 baht?

There’s a huge hole in the UK economy, those that helped dig the hole are now complaining about the Government trying to g to back fill it: 

 

https://www.independent.co.uk/news/uk/politics/brexit-tax-rachel-reeves-budget-b2871536.html

On the up side pensions have been increased by nearly 600pounds a Year...

4 minutes ago, brian69 said:

On the up side pensions have been increased by nearly 600pounds a Year...

 

 

Brexit voting pensioners who caused this mess should not be rewarded. 

 

Why does the UK allow dual citizenship ? If you move abroad say to Thailand, why not stop all pensions and cut them off? Why so generous. Most of these pensioners don't appreciate it anyways, they're constantly whinging. 

24 minutes ago, DonniePeverley said:

 

 

Brexit voting pensioners who caused this mess should not be rewarded. 

 

Why does the UK allow dual citizenship ? If you move abroad say to Thailand, why not stop all pensions and cut them off? Why so generous. Most of these pensioners don't appreciate it anyways, they're constantly whinging. 

So your saying people that paid National Insurance for 40 years shouldn't get a pension ? That is why its called INSURANCE !

Just now, brian69 said:

So your saying people that paid National Insurance for 40 years shouldn't get a pension ? That is why its called INSURANCE !

 

 

National insurance does not go solely towards pensions. It's also for medical care - but let's be honest it just goes into the central tax pot doesn't it.

 

If a Thai person leaves Thailand they lose all benefits including pensions. If a Chinese person leaves China he forfits his pensions and any other state benefits. 

 

Hoping the new Digital ID will put a stop to those who live abroad but claim pensions and use the NHS. 

39 minutes ago, Celsius said:

I just have one question.

 

How come British Pound it not at 29 baht?

'Coz Britain is Great....

1 hour ago, DonniePeverley said:

 

 

National insurance does not go solely towards pensions. It's also for medical care - but let's be honest it just goes into the central tax pot doesn't it.

 

If a Thai person leaves Thailand they lose all benefits including pensions. If a Chinese person leaves China he forfits his pensions and any other state benefits. 

 

Hoping the new Digital ID will put a stop to those who live abroad but claim pensions and use the NHS. 

Your forgetting all the tax paid .... that also pays the NHS.

I wonder if there is a common denominator amongst the families with six or more children? Religion perhaps?

 

 

 

Boris Johnson is going to be laughing all the way to the bank.

 

All his hard work has paid off at last.

2 hours ago, DonniePeverley said:

 

 

Brexit voting pensioners who caused this mess should not be rewarded. 

 

Why does the UK allow dual citizenship ? If you move abroad say to Thailand, why not stop all pensions and cut them off? Why so generous. Most of these pensioners don't appreciate it anyways, they're constantly whinging. 

I take it you don’t have any pension savings and thus retreat to the crabs in a bucket argument.

 

52 minutes ago, emptypockets said:

I wonder if there is a common denominator amongst the families with six or more children? Religion perhaps?

I expect that’s the question the DM intended to prompt, you dutifully played the part they scripted for you.

 

 

1 minute ago, Chomper Higgot said:

I expect that’s the question the DM intended to prompt, you dutifully played the part they scripted for you.

 

 

Who, or what, is the DM?

I will comment as I see fit even if it doesn't fit in with your blinkered view of the world.

Just now, emptypockets said:

Who, or what, is the DM?

I will comment as I see fit even if it doesn't fit in with your blinkered view of the world.

DM = Daily Mail.

 

Refer the OP

 

 

1 minute ago, Chomper Higgot said:

DM = Daily Mail.

 

Refer the OP

 

 

Thank you for the clarification.

Terrible budget that punishes the people who pay the majority of  income taxes and rewards non contributors.

Meanwhile the illegal migrants will continue to collect  all the money than can.

Truly a country in serious trouble.