How will the new Budget affect people facing hardship? 

Like many charities working in the sector for supporting those in financial hardship in our society, we have anxiously awaited the Budget, as we have done with previous administrations, because inevitably within the detail are measures, making up the overall government strategy, which critically affect those experiencing hardship in their lives.
 
With a new administration, its often difficult to know what to expect and what election manifesto statements will mean in the nitty gritty of everyday life. We were, therefore, was very pleased to hear from the Chancellor phrases such as Pounds in Pockets, Wealth Opportunities and Improving Living Standards, all of which REACH has been promoting for a long time!
 
So, what will that mean for local people in need?

The Good
There are a number of measures which we welcome, and are essential for people struggling in the community:
 
National Living Wage is to rise to £12.21 per hour for over 21s - this will set much improved levels of pay for those currently struggling with the cost of living, who are in the lowest paid jobs.

Fair Repayment Rate - for people on Universal Credit - this reduces the level of debt repayments (including, advanced hardship loans or benefit overpayments) people pay on from their standard allowance from 25% to 15%, which will, overall, help 1.2 million households in the UK including a great many within REACH’s local area. These repayments occur when someone is overpaid benefits and have to pay it back, or if they request advanced hardship loans in an emergency situation.

A further One Billion Pound investment into the Household Support Fund - which we know for certain has had positive impact locally and is a real lifeline for many Haverhill families. 

The increase in the unpaid Carer’s Allowance from £151 to £196 per week - will not only facilitate increased family income but also provide better care and support for those who need it. 

The Starting Points
However, we are disappointment that the Budget did not go further in addressing the needs of those for whom daily life has become a growing struggle over recent years, added to by the pandemic, global turmoil and the cost of living crisis which is still with us;

Although the Fair Repayment Rate is a good start towards the affordability of essentials for those on Universal Credits, the measure falls short of what many prominent charities, including REACH, have argued for and that is an essentials guarantee of at least £120 per week. This is something REACH have been campaigning for in partnership with Trussell and The Joseph Rowntree Foundation.

With the absence of the Winter Fuel Payment this year - there were no specific announcements for pensioners who may be 'just about managing’. The eligibility criteria for pension credits is so low there are many who will, for sure, be above the threshold and who will miss out and struggle this winter. 
 

REACH’s Engagement & Advocacy Lead, Saffron Carter, said “Of course there is much in the Budget which is positive, and this we expected and applaud, but I have real concerns, knowing the level of hardship within the community, that it does not go far enough to address major causes of this and that some aspects of the Budget may actually have a negative impact”.

The Concerns
In addition to the disappointments, we do have real concerns about the possible negative impact of some other Budget measures :-
 
The increase in Employers’ National Insurance may mean business, reducing total work hours or contributing to pensions rather than wages, all of which would reduce Pounds in Pockets, especially in some major employment sectors in Haverhill. REACH is also worried about the increase in its own payroll costs - money which would be better spent on those it is trying to help. 

The increase in Stamp Duty to 5% for second - rental - properties may deter landlords from buying to rent, thereby reducing an already inadequate rental housing stock for those on low incomes. 
 

Saffron went on to say “Regardless of our satisfaction or otherwise with various aspects of this Budget, it is the task of REACH to keep pressing government for even better measures down the line to bring about a sea-change in our society and deliver the hope which is currently absent in so many lives”.