Chancellor’s plan for UK economy met with concern from leading charities including Barnardo’s, Health Foundation, Mind, Fostering Network
Yesterday, Chancellor of the Exchequer Rachel Reeves made a statement to the House of Commons, setting out the government’s plan for the UK economy.
Photo by Andre Taissin / Unsplash
That plan comes in the shadow of a new economic forecast from the Office for Budget Responsibility (OBR), which has lowered its earlier estimate of growth this year from 2% to 1%. It has also raised its predicted rate of inflation from 2.6% to an average 3.2%.
Among the plans set out by the Chancellor, from November next year there will be a stricter test of eligibility for the main disability benefit, personal independence payments (PIP). For more, see our analysis: Spring Statement places the most vulnerable in the firing line.
Leading charities have been quick to respond to the Spring Statement.
Lynn Perry, Chief Executive of the children’s charity Barnardo’s, says: ‘The Spring Statement today offered little hope to the 4.3m children and their families who are living in poverty. In fact, the welfare changes announced today will make things even worse, putting an extra 50,000 children into relative poverty. These children face devastating impacts on their health, well-being and life opportunities long into adulthood.
‘While we welcome the investment to recruit 400 new foster carers, much more action is urgently needed to achieve the government’s ambition to create the healthiest generation of children. Planned freezes to universal credit will add to the worry facing families already struggling to make ends meet. Looking ahead to the Spending Review, we urge the government to prioritise investment in lifting children out of poverty – an investment in children is an investment in the country’s future.’
Dame Jennifer Dixon, Chief Executive of the Health Foundation, says: ‘The fiscal outlook requires difficult choices, but the decisions taken in today’s Spring Statement will hit some of the most vulnerable people the hardest and risk damaging the nation’s health and future prosperity. Reforms to the welfare system include proposals to cut and freeze the health element of universal credit and restrict eligibility for personal independence payments. The government’s own impact assessment projects that this will leave 3.2m families worse off and 250,000 more people in relative poverty by 2029/30, which can further erode their health and ability to work.
‘Social care was notable by its absence from the Chancellor’s speech. It is deeply disappointing that calls to support the sector with the additional costs of increases in National Insurance contributions and the National Minimum Wage have largely been ignored. This will heap further pressure on a struggling sector and risks reducing people’s access to publicly funded care. The Social Care Commission’s work to develop a long term plan for reforming social care cannot come soon enough.’
Dr Sarah Hughes, CEO of mental health charity Mind, adds: ‘The extra cuts to benefits announced today are devastating and will push more people into a mental health crisis.
‘It’s a political choice to try fixing the public finances by cutting the incomes of disabled people, including people with mental health problems. Benefits are a lifeline for so many people. Cuts will push people into poverty. This is policy making by numbers with little recognition of the impact on real people’s lives.
‘Our Federation of local Minds across England and Wales sees the consequences of these decisions every day. We are always here to support people, but we can’t do it alone. We urgently call on the Government to rethink these plans. We can, and must, do better.’
A spokesperson for the Fostering Network says: ‘Today’s Spring Statement announced a £25 million investment in the fostering system. While details remain limited, it has been confirmed that part of this funding will go toward recruiting 400 new fostering households. Any additional investment in foster care is welcome, but this falls short of addressing the deep-rooted challenges faced by foster carers.
‘The Fostering Network calculates an additional 5,000 fostering households are needed across the UK to ensure every child and young person can be placed in a home that meets their needs. The recruitment of just 400 new households is welcome but will not come close to meeting this demand.
‘As well as recruitment, it is vital to continue to invest in retaining the dedicated foster carers we already have. Our 2024 State of the Nations’ Foster Care survey found that foster carers are stepping away due to a lack of support, insufficient respect from professionals, and burnout. Investment in recruitment alone is not enough- without addressing these fundamental issues, the system will continue to struggle.
‘Change is needed now. We are calling for increased allowances for foster carers which cover the full cost of caring for a child. We also want to see the implementation of a national recruitment and retention strategy for foster care, as well as a national register for foster carers. This will enhance the status of foster carers and improve the matching process, ensuring every child receives the care and stability they deserve.’
In related news:
£65,000 donated to fund education grants for nurses and midwives
Over 3,000 care children have been moved away from their families – research