by Emma Jackson, Head of CAS Social Justice team.
This article was first published in the Scotsman on Sunday on 03 November 2024.
It’s been four days since the Budget. The Chancellor led her address with a loud cry to ‘invest, invest, invest’. Did we see the investment that’s really needed?
Like many charities, the Scottish Citizens Advice Network has seen a sharp rise in both the volume of people needing our support and the complexity of issues they bring. Even before the pandemic, our advisers have been working with people who don’t have enough income to pay their bills and put food on the table. Destitution and debt are on the rise.
We said we would judge this Budget on how it delivered for people experiencing most harm. So, how did the Chancellor do?
There were several welcome measures that will help mitigate some of the problems faced by some people on low incomes, get some much-needed money into their hands.
Reducing maximum debt deductions from Universal Credit is an important step. Similarly, the increased minimum wage and the rise in the earnings threshold for Carers Allowance will also give a cash boost for some of lowest income households.
However, this Budget didn’t address what’s really needed if we are to stop people from experiencing harm at the current industrial levels. Hunger and hardship are in almost every community. The steps taken, welcome though they are, fall short of the whole scale systems change that is really needed, especially regarding social security, energy and housing.
On social security, my colleagues and I have spent so much time over the last few years presenting evidence from our data on the flaws in Universal Credit. The five-week wait, the two-child limit, and the fact that the payment is not enough for people to live on. We urgently need this Government to make good on its election manifesto promise to review Universal Credit.
On energy, households across Scotland are desperately worried about their bills. Every day advisers at our CABs and case workers at our Extra Help Unit speak with people facing mounting energy debts, consumed by worry. People like Paul, who has over £2.5K of energy debt and is terminally ill.
Our energy markets are broken. We’ve long called for the introduction of a social tariff and targeted debt write-off schemes. In the months ahead, we’re ready to help the Government act on these.
On housing, increased spending on social homes is welcome. Though we will need to see the details of what this means for additional funding coming to Scotland, we urge the Scottish Government to use all available capital to build more affordable homes.
However, the rate of local housing allowance was not uprated. Our evidence demonstrates far too many people on low incomes can’t afford rents, forcing them into arrears and potential homelessness. Home is the foundation of all our lives. This Budget missed an opportunity to help ensure everyone has an affordable home.
There were many other announcements in the Budget, like changes to tax for businesses. We need our economy to work for all of us. The opportunity for prosperity should be available to everyone.
The Chancellor said that the poor state of the UK’s finances can’t be underestimated, and so problems could not be addressed in one go. This is true. But we can’t delay either. For those experiencing the most financial harm we need the UK Government to go further, and faster.
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