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Anti-poverty and carers charities comment on the Budget

By Agencies
March 12, 2020

Commenting on the Budget, theChief Executive of Child Poverty Action Group (CPAG), Alison Garnham said: “The new Corona virus emergency measures on Statutory Sickness Pay, Employment and Support allowance and Universal Credit are welcome but low-income families need support in health and in sickness. When it comes to the nation’s longer-term priorities, action on poverty must trump potholes and pubs.  We need to properly re-invest in our social infrastructure.    

“Universal Credit continues to cause havoc for millions so it is disappointing that the Chancellor brought no substantial permanent reforms to the table today. The temporary lifting of the Minimum Income Floor in Universal Credit is very welcome, but to be effective, a plan for prosperity must include fixes to the fundamental design flaws and funding shortfalls that have left Universal Credit unfit for purpose.   

“It is within the Government’s power to spread opportunity more evenly across the UK and to enable struggling families to get on, but unless funding is restored for Universal Credit and for children’s benefits, investment in infrastructure will have limited effects. This Budget was an opportunity to begin to slow the rise in child poverty but there was no evidence today that low incomes are the priority that they should be in any effective strategy to level up the country and boost the economy.  The Government could lift seven hundred thousand children from poverty by 2023 if it restored support for children in Universal Credit to its 2013 value, added £5 to child benefit and removed the two-child limit and benefit cap. That would begin to level up those children and to send a strong signal to struggling families that they have not been forgotten.”

While welcoming the new Corana-virus-related benefit changes announced in the Budget, Ms Garnham called for further support for people claiming universal credit and other benefits who must self-isolate to reduce the risk of spreading Corona virus. Jobcentre staff need clear guidance enabling them to lift work-search and other requirements on claimants who must self-isolate, in addition to the Budget announcement to lift the requirement to physically attend benefit offices.

Ms Garnham said: “It is critical that universal credit payments are made available immediately on a non-repayable basis to anyone self-isolating who needs to claim.”

In addition CPAG said:

  • In the event of schools closures there should be an emergency uplift in child benefit at least to the value of free school meals, to ensure that all parents can provide their children with adequate healthy food at a time when family incomes are likely to be reduced as parents have to stay off work to care for children, and children cannot receive free school meals.
  • Work-search/work-preparation requirements should be lifted for parents self-isolating or where children are required to stay off school.
  • A temporary uplift in key benefits to ensure people who have to self-isolate can afford to eat healthily and heat their homes.
  • Sanctions and deductions should be lifted from people’s awards if they are self-isolating, and/or people who are sanctioned and self-isolating should have automatic immediate access to a hardship payment.

Carers UK pointed out that after promises by the new Government to deliver a solution for the social care crisis, the Chancellor Rishi Sunak did not mention social care in the Budget.

Helen Walker, Chief Executive of Carers UK, said: "We are dismayed that social care did not get even a mention in today’s Budget, after the Government’s promise to deliver a solution.

“As it is, families are under huge strain, with 600 people giving up work every day to care and many unpaid carers seeing their health and finances suffer. In the coming weeks, they will be taking extra precautions – stepping up beyond what they already do – to look after relatives and friends with underlying health conditions as the country deals with Coronavirus.

“In the short term, it is imperative that unpaid carers receive the support they need through the Government’s £500 million hardship fund for local authorities to support vulnerable people. We are pleased the emergency response fund for public services to deal with Coronavirus includes helping local authorities who need social care support.

“The Chancellor said the Government is getting things done – not social care. Unpaid carers have been holding the system together for too long and they simply cannot afford to keep waiting for this promised plan.

“Until there is long-term investment in the system, and a proper plan, life will only become more difficult for the UK’s families.”

Also commenting on the Budget, Chief executive at the Trussell Trust Emma Revie said: “The Chancellor is right when he says that Coronavirus represents an unprecedented challenge for the UK, and to introduce measures to strengthen the safety net for the most vulnerable people. We welcome the extra financial support announced, particularly the £500 million hardship fund for local councils, which can play a key role in anchoring us all from poverty.

“But as coronavirus unfolds, more people could need this safety net than ever before – especially those who aren’t eligible for sick pay or have unstable jobs. For many of these people the five-week wait for a first Universal Credit payment could cause real hardship, despite measures announced in today’s Budget. We know the five-week wait is already pushing people to food banks, trapping many in debt and making issues with housing, ill health, disability and domestic abuse worse.

“In his statement, the Chancellor said that he will continue to review the situation. As more people look likely to move onto Universal Credit as a result of the outbreak, the most effective way to help would be to end the five-week wait for a first Universal Credit payment by giving people grants, rather than loans that have to be paid back further down the line. We can prevent more people being locked into poverty as the outbreak develops by ending the wait now.”

* Child Poverty Action Group https://cpag.org.uk

* Carers UK https://www.carersuk.org/

* Trussell Trust https://www.trusselltrust.org

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