Responding to the Chancellor’s Budget, Rachelle Earwaker, Senior
Economist at the Joseph Rowntree Foundation said:
“The Chancellor has made some steps towards tackling some of the
issues which have affected families on low incomes over recent
years, but we have to be clear – the difficult years are far from
over. It will take a much more fundamental shift for our economic
and political system to provide the good jobs, social security
system and homes that we all need.”
“Inflation may have stopped escalating, but with food prices
rising at over 16 per cent this year and 2021-23 seeing the
largest successive two year inflation increase since 1979-81,
many families are seeing no evidence of the Chancellor’s reasons
for optimism. Prices have not started to come down, nor does
optimism offer comfort to the 7.2m families unable to afford
essentials.
“The glaring omission from the speech of any
action to tackle the housing crisis, despite the OBR forecasting
a drop in housebuilding in the coming years and higher mortgage
rates and soaring rents putting pressure on households, is
short-sighted and means the Chancellor is ignoring a growing and
serious economic challenge.”
On participation in the labour market:
“This Budget has had a strong focus on boosting employment, and
expanding free childcare to very young children and paying
childcare costs up front for those on Universal Credit fixes some
major problems for many working parents. To meet these
aspirations it’s vital that the funding given will match the
cost.
“More fundamental reform may be needed to make childcare
affordable and available where it is needed, and many of those
who have spent this winter making impossible choices between
eating hot meals and heating their homes will be wondering if he
has really done enough to give them a secure foundation.
“There are big problems with the Work Capability Assessment. It
labels people, it doesn’t unlock support to access employment,
and it’s not trusted by disabled people. So there are good
reasons for change and we welcome proposals for universal support
if it is designed in conjunction with those who will use it.
“But there are very concerning aspects in the plans set out
today. Addressing these issues must not go hand in hand with an
increase in sanctions, which we know are counter-productive,
harmful to people’s finances and health, and drive people into
destitution.
“To stand any chance of making a positive difference, any new
approach to assessments must not lead to the erosion of financial
support for disabled people and should be designed on the basis
of enabling positive steps towards employment, in particular for
the 2.2 million people not working with ill-health or a
disability who say they would like to or expect to work again in
the future.”
JRF will be conducting further analysis during the day on the
effects of the Chancellor’s announcements on people on the lowest
incomes. You can read about JRF’s recommendations ahead of the
Budget here: https://www.jrf.org.uk/report/budget-2023-three-big-challenges-low-income-households-chancellor-must-address