Autumn Budget: Benefits increase but more support needed

The Salvation Army has welcomed a number of measures announced in today’s budget that we have long campaigned for - but warn vulnerable families will still be left behind.

In particular, the Church and Charity is pleased to see: 
• The introduction of Fair Rate Repayment, which will tackle levels of debt repayments for those in receipt of welfare support. This will be welcome news for people in debt navigating the social security system and will help people avoid a debt spiral – and is something we have been calling for.
• Benefits for people of working age will rise in line with the Consumer Price Index (CPI) for September next year. 
• The extra £233m for homelessness prevention, and further investment in social housing, are welcome and urgently needed to start to tackle the growing homelessness crisis.

While the changes will make a difference to low-income individuals and families, we are disappointed that the two-child benefit limit has not been scrapped as part of this budget. This will leave more children at risk of being forced into poverty.

We are also disappointed that the freeze on support with housing costs (local housing allowance) will be maintained. This is going to have an immediate impact on families who will have to find up to £100 a month to cover it.  

Major David Betteridge, Director of The Salvation Army’s Family Ministries said: 

"The Salvation Army recognises the Government, in its own words, has had to make ‘difficult decisions’. This budget could have been an opportunity to ensure that all families have the very basics like a stable place to live, three square meals a day and money to pay utility bills and buy school uniforms.

“The Government’s own figures show that across the UK, over 7.5 million families with children are trapped in poverty – nearly 27%  of all families. Every day Salvation Army officers see families living hand to mouth and these vulnerable families must not be part of efforts to address the budget deficit.

“We are packing food parcels, providing hot meals, providing debt advice, and listening to people struggling to comprehend how they can no longer make ends meet. Above all, we are praying we can meet the need that is growing day by day.”

The Salvation Army is calling on the government to:
• Reverse the planned Housing Benefit freeze to ensure that those eligible for help get the support they’re entitled to, helping to remove the threat of homelessness. 
• Remove the cap on two-child benefits
• Ensure our welfare system provides the support and dignity for those in need by making sure the system covers the cost of essential goods 
• Widen the group of people eligible for employability support from the state
• Support trusted community groups working with those struggling to get back into work; there cannot be an overreliance on Jobcentres.