The Autumn Budget 2024: our thoughts

Date Published: 31 Oct 2024
Close up of the clock and blue sky

At Caritas Salford, our vision is for an equal and just society, where each person can live in dignity, free from poverty, homelessness and disadvantage.

However, we know that sadly this is not the case for so many people across Greater Manchester and Lancashire today.

We recognise in yesterday’s UK Budget, Chancellor Rachel Reeves sought to address some of the major economic challenges that face Britain and affect the health, welfare and equity of people across our communities.  This is a task of some enormity,  

We welcome various positive developments in the Budget.  Relief measures introduced such as the £1billion extension of the Household Support Fund, the reduction in debt deductions for Universal Credit claimants which will provide some immediate relief for families and individuals facing financial insecurity, and the increase in Carer’s Allowance earnings limits are encouraging steps and we applaud the Government’s commitment to alleviate some of these burdens.

Increasing local government funding by 3.2% with additional funding towards social care is also welcomed alongside support for school breakfast clubs.  Similarly, investment in services for children with special educational needs and disabilities signals a promising commitment to the welfare of young people and aligns with our commitment to safeguarding the dignity and rights of all.   

However, we were deeply disappointed to see that the two-child benefit cap remains in place, a policy that continues to place undue and unnecessary strain on larger families already struggling with the cost-of-living crisis.

This cap limits access to essential financial support for some of the most vulnerable families in our communities, making it more challenging for them to meet basic needs. The Resolution Foundation’s analysis shows that an additional 63,000 children will be affected by the two-child limit between now and April 2025 and, should it remain in place, an additional 213,000 children would become affected between now and April 2026. We will continue to campaign for the Government to revisit this cap as part of a comprehensive approach to tackling child poverty in the UK. 

Furthermore, the Budget does not go far enough to address the systemic poverty affecting millions in our society.  This budget fails to address the frozen Local Housing Allowance and the ongoing benefits cap leaves significant gaps in support for families who are barely managing to cover their housing costs. Without an increase in housing benefits, many families face an untenable situation, unable to afford secure, safe accommodation. The decision to uphold these caps, along with the two-child benefit limit, will likely push more households into hardship and diminish our ability to meet the rising demand for emergency support services. 

While we acknowledge the Chancellor’s focus on boosting public service funding, especially in healthcare and education, and support the Government’s move toward multi-year funding settlements, this Budget suggests that there is still much to be done.

Charities like ours continue to work to bridge the gaps left by austerity and cuts to social services. 

Fair wages are essential and, as we approach Living Wage Week next week, we welcome the increase in the statutory minimum rates but will continue to advocate for improved pay to ensure people have access to a real living wage. 

However, increased employer National Insurance (NI) contributions, will place a significant burden on charities like ours who are already facing what NCVO have described as a  “triple squeeze” because of rising operational costs, reduced funding and higher demand. 

These increases mean that our limited resources will be stretched even further as we work to maintain our programmes in supporting those experiencing poverty, homelessness, disadvantage and discrimination.  We will continue to support the call from many charities to better consider the profound ripple effects these policies have on local charities and the people we serve. 

We’re committed to advocating for those in our communities who are affected most by poverty and limited support systems. We’ll continue to work with Government – national and local – the wider network of Catholic charities and our partners to campaign for meaningful, long-term changes that address the root causes of poverty.

The journey to truly supporting vulnerable families and individuals is ongoing, and we call on policymakers to take further steps toward creating a just and compassionate society where no one is left behind. 

Find out more about ways we support people in Greater Manchester and Lancashire by clicking here now.

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