Advice NI Budget Response: Some positive announcements but failure to address austerity of the past will continue to haunt this Government

Good news for carers and those in low paid work but no end to the hardship for families affected by decade of austerity

Kevin Higgins, Head of Policy, Advice NI said:

“Whilst we welcome some positive announcements in the Rachel Reeves budget the overriding feeling is one of a missed opportunity to really tackle the very real hardship imposed during the last decade of austerity on low income households both in and out of work.

We do welcome some positive measures including a 6.7% increase to the minimum wage, the increase in the Carers Allowance earnings threshold from £151 to £181 and reductions to Universal Credit deductions from 25% to 15%, so ensuring claimants can retain more of their income.

However for many people still struggling to cope with the cost of living crisis and the raft of previous Governments austerity measures including the working-age benefits freeze which hollowed out the value of social security payments; the introduction of Universal Credit which has rightly earned the reputation of being an austerity benefit because of the reductions and cuts it contains in comparison to the benefits it replaces; and of course the much-maligned 2 child limit, there is very little respite provided by this budget.

Of course we understand that it would be impossible for one budget to undo all the harm caused by the decade of austerity, but it is a notable failure not to tackle the scourge of child poverty by scrapping the 2 child limit.

We call on this Government to urgently review the adequacy of the financial support provided through the social security system to people both in and of work. It is patently unfair to Universal Credit claimants to have such a wide variation in uprating formula – minimum wage 6.7% uplift; pensions 4.1% uplift; working age benefits like Universal Credit 1.7% uplift based on the September CPI figure.”

Notes

  1. Welcome to Advice NI | Advice NI
  2. Universal Credit: An Austerity Benefit | Advice NI
  3. Making Universal Credit Better | Advice NI
  4. Advice NI Manifesto | Advice NI