The spring Budget presented by Chancellor Jeremy Hunt introduces measures targeting support for those on lower incomes in the UK, amidst concerns over increasing tax burdens and calls for long-term poverty solutions.
Chancellor Jeremy Hunt recently presented the spring Budget, introducing measures aimed at supporting those on lower incomes in the UK. Among the key announcements were a 2 per cent reduction in national insurance, adjustments to child benefits, and the introduction of a new levy on vaping products. Despite these changes, concerns have been voiced about the potential increase in the tax burden for low-earners.
One significant feature of the Budget is the extension of the Household Support Fund (HSF) until later this year, aimed at assisting vulnerable households amid the cost of living crisis. Local councils are tasked with distributing these funds to those in need in their communities. Additionally, the repayment period for budgeting advance loans for Universal Credit recipients facing financial emergencies has been doubled to two years. The scrapping of Debt Relief Order fees from April 6 was another measure designed to support those in debt by eliminating upfront costs.
Although the Budget did not directly address benefit increases, benefits are set to rise by 6.7 per cent in line with inflation from April 1, which may not fully compensate for prior inflation spikes. The Joseph Rowntree Foundation has expressed concerns over the growing poverty gap in the country as a result.
The UK government’s decision to extend the HSF has been received with mixed reactions. While the extension has been praised, it has also been criticized for being a temporary solution. The fund, established in 2021 and having provided £2.5 billion in welfare support since, will receive an additional £500 million. However, there are calls for longer-term solutions to tackle rising hunger, hardship, and debt, with organizations like the Trussell Trust and Citizens Advice emphasizing the need for sustainable support.
The Budget has also faced criticism for lacking actions to address poverty directly. Labour MP John McDonnell described it as a “cynical” move by a government attempting to boost its popularity. Concerns include the budget’s failure to provide sufficient support for individuals living in poverty and to address issues facing the NHS, education, and local government financing.
This Budget comes during a period of economic challenge and political transition in the UK, with Boris Johnson having resigned as a member of parliament and the Conservative party preparing for the upcoming general election. The measures introduced in the Budget aim to alleviate some of the financial strains facing vulnerable populations, but they have sparked debate about their efficacy and the need for more comprehensive solutions.
