In the latest Budget announcement, Chancellor Jeremy Hunt introduces measures including a national insurance cut and extensions to financial support schemes aimed at relieving the cost of living pressure, amidst criticism over their impact on the economically vulnerable.
Chancellor Jeremy Hunt unveiled the spring Budget, announcing significant adjustments including a 2 per cent reduction in national insurance, alterations in child benefits, and tax revisions. The national insurance cut, described by Hunt as a “tax cut for working people,” has sparked debate, with some arguing that low-earners may end up with a higher tax load than in previous years.
In response to the Budget, Labour Leader Keir Starmer criticized the government for the rising cost of living essentials such as food and rent, accusing it of making citizens “pay more for less.” However, Hunt’s Budget introduces measures aimed at alleviating financial pressure on low-income households. These include extending the Household Support Fund (HSF) and doubling the repayment timeframe for budgeting advance loans from one year to two. From 6 April, the Budget will also remove the £90 application fee for Debt Relief Orders (DRO), offering aid to those battling debt.
While the Budget did not directly address benefits, they are scheduled to increase with inflation from 1 April. Despite these provisions, there remains concern over the Budget’s effect on those in deepening poverty amid a persistent cost of living crisis.
