This morning, Chancellor of the Exchequer Rachel Reeves delivered her pre-budget statement ahead of the Autumn Budget, scheduled for 26th November.
Despite mounting welfare costs, Reeves offered no meaningful solutions — only strong hints that taxes will rise, paired with blame deflected onto everything and everyone except the government itself.
It’s no surprise, then, that Nigel Farage rushed out a bold announcement promising welfare cuts if Reform wins the next general election yesterday, while Tory leader Kemi Badenoch quickly followed Reeves with an online broadcast that, in substance, amounted to much the same.
As the government flounders, it seems poised to announce little of substance of savings on benefits or public services — yet millions already trapped in a financial vice not of their own making will see the cost of living rise again, working harder for ever-diminishing returns.
The Tories — who helped engineer the current crisis over their 14-year tenure up to summer 2024 — and Reform — now visibly undergoing their own establishmentisation makeover — aren’t offering help to people either. They’re offering help to the economy.
And that’s precisely where the problems began for those whose lives revolve around the benefits system today.
There are hard truths here. Truths that many untouched by poverty still find just a little too uncomfortable to believe.
There will always be people who are:
• Out of work for valid reasons
• Unable to work due to illness, disability, or caring responsibilities
But there are also many people who want to work and are able to work — yet still can’t. Why? Because:
• They can’t find jobs that match their experience
• They can’t find roles that fit their qualifications
• They simply don’t “fit” the mould employers are looking for
It’s easy to assume that anyone who wants a job can get one — any job, at any time. And it’s just as easy to judge those who don’t take “any job” as lazy, entitled, or abusing the benefits system.
But those who make these judgments often haven’t experienced what it’s like to be unemployed and dependent on state support.
The Reality of Benefits
Let’s be clear: basic benefits are not enough to live on.
We’re surrounded by comforting myths — stories we rarely question unless we’re forced to confront the truth. One of the most dangerous myths is that the National Minimum Wage is enough to live on independently.
Here’s the reality in November 2025:
• Universal Credit: Between £316.98 and £628.10 per month, depending on your circumstances
• Minimum Wage: £12.21/hour. For a 40-hour week, that’s about £2,116.40/month
• Actual cost of living: To live independently, a single person likely needs £16–£17/hour — around £2,773.33/month
That’s a shortfall of over £600/month, even for someone working full-time on minimum wage.
The Impossible Choice
Now imagine you’re unemployed, with no savings or support, and your only option is to claim £628.10/month. What do you do?
• Take a job that still doesn’t cover your basic needs?
• Or claim every benefit you can, just to survive?
For many, working full-time in a low-paid job — often under poor conditions and public judgment — while still needing benefits just doesn’t make sense.
The Myth of the “Benefits Culture”
The idea that claiming benefits is an easy ride is a myth. Genuine claimants are treated the same as those gaming the system. The rules are rigid, often making it harder — not easier — to find meaningful work.
Pushing people into low-paid jobs that still leave them reliant on benefits, food banks, or debt might reduce one type of welfare cost. But it could as easily increase the others — through the problems that an ill-considered attempt to push everyone into ‘work’ will create, like mental health issues, workplace burnout, and long-term poverty.
The AI Displacement Problem
A growing wave of joblessness is being driven not by lack of talent, but by the unnecessary and unchecked takeover of roles by artificial intelligence.
Skilled, experienced professionals — once vital to their industries — are being sidelined by automation that prioritizes cost-cutting over human value.
As more capable workers are pushed into the job queue, many will find themselves forced to claim benefits, not because they lack ability, but because the system no longer has space for them.
The Bigger Problem
Most people on benefits aren’t lazy — they’re surviving.
When life becomes a daily struggle, the benefits system can feel like the only option.
But simply cutting benefits without creating real alternatives — like jobs that pay enough to live on — risks pushing thousands into homelessness and crisis.
The Psychology of Work and Pay
Most people don’t need prestige — they need security.
If lower-paid or less challenging jobs guaranteed that workers could meet all their financial obligations and live with dignity, many would take them without hesitation.
The problem isn’t the work itself — it’s that the pay doesn’t match the cost of living.
When people know they can cover rent, bills, food, and essentials every month, they’re far more willing to contribute, even in roles that society undervalues.
What Needs to Change
We can’t fix the benefits system without fixing the economic system that creates the need for it.
If we want fewer people on benefits, we must:
• Build an economy where full-time work pays enough to live on — without top-ups
• Stop supporting a system that enriches a few by impoverishing the many.
Until the government legislates for a fairer system — one where the lowest-paid can live independently on a full day’s work — poverty will persist.
That’s where real change begins.
Adam Tugwell 