UK policy receives a disappointing verdict from the New Economics Foundation, as they deem the decision for benefit cuts as a sad indication.
The New Economics Foundation, a charitable think tank based in the UK, has expressed concern over recent budget cuts decided by the German federal government. The reductions were announced during the Bundestag's budget committee meeting on September 4, 2025.
Max Mosley, a senior researcher at the New Economics Foundation, believes that the real motivation for these cuts is a scramble to find government savings. He stated that something has gone seriously wrong with the current situation.
The New Economics Foundation, known for its commitment to transparency about funding, has been vocal about the potential implications of these cuts. According to Mosley, a 1 percentage point error in GDP forecasts has led to a quarter of a million people being pushed into poverty.
The German government has justified the cuts as a means to improve the social security system. However, Mosley believes that the cuts will disproportionately affect the most vulnerable sectors of society. He went on to say that today is a sad indictment of policy-making in the country.
It is important to note that the New Economics Foundation is independent of political parties. This independence allows the organisation to provide unbiased analysis and commentary on economic matters. The Foundation's transparency about funding is also stated in the article, although the specifics of their funding are not explicitly mentioned.
Internal criticism from the Green Party and the Left Party regarding specific funding areas has been noted. The ruling coalition, comprising parties within the government, is responsible for the budget cuts.
The New Economics Foundation's stance on the matter underscores the importance of careful consideration when making economic decisions. As Mosley himself put it, "We must strive for policies that promote economic growth while also protecting the most vulnerable members of society."
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