BASW UK Responds to Spring Budget

Chancellor of the Exchequer, Jeremy Hunt MP today (Wednesday) delivered the UK Government’s Spring Budget to the House of Commons, outlining his plans for spending and taxation.

During his statement, the Chancellor said he was setting out the next stage of the government’s plan to halve inflation, grow the economy and reduce debt. He explained that the plans he set out in the Autumn Statement were intended to stabilise the economy, whereas the Spring Budget aims to drive economic growth. However, he has warned that the UK has a hard road ahead before it returns to prosperity. Notably, no immediate tax cuts or extra funding for public sector pay rises were announced.

What did the Chancellor announce?

  • Energy Bill Support Scheme extended until end of June,
  • Energy Price Guarantee (which caps household bills at £2,500 a year) extended until June,
  • Customers on pre-payment meters will have charges brought in line with direct debit customers,
  • Provision of 30 hours of free childcare a week from nine months old for working parents,
  • The qualifying care relief threshold will be increased to £18,140,
  • £10m over the next two years to help the voluntary sector to prevent suicide and support families,
  • Increasing the amount of Universal Credit support for childcare costs by almost 50% and will pay this upfront instead of in arrears. Families will now be able to claim £951 for 1 child and £1630 for 2 children.
  • Planned 12p rise in fuel duty suspended and current relief of 5p per litre extended for another year,
  • The £40,000 cap on annual pension contributions will rise to £60,000 and the lifetime allowance limit on pension savings will be abolished,
  • The Work Capability Assessments will be abolished and a new programme called universal support will be set up to help disabled people get into work,
  • Corporation tax rate will rise from 19% to 25%.

BASW UK recently wrote to the Treasury making the case for greater spending and focus on early intervention and prevention services and addressing workforce recruitment and retention challenges in social work. We need long-term funding to address the issues in social care as opposed to ‘short bursts’ of cash that prevent local authorities or services from planning ahead. In addition, we took the opportunity to highlight our anti-poverty campaign to the government and call for more support for those experiencing hardship because of increasing cost-of-living pressures. Read our full submission here.

Responding to today’s fiscal statement, BASW UK Chair, Julia Ross commented:

“Months of rising prices have plunged many households into financial insecurity and hit those on the lowest incomes the hardest. Meanwhile, social workers are being stretched to breaking point doing their upmost to meet rising demand in social work services. The human cost for the many children, families and adults facing poverty of the government not responding with bold and urgent action is one that we cannot afford.

“While parts of today’s budget offers some support, overall it falls short in truly alleviating the worst impacts of the cost-of-living crisis and addressing any of the problems facing social care.

“BASW has repeatedly made clear to the government that we need long-term funding to fix the deep-seated issues in social care. This includes investment in social work recruitment, education, professional development and retention initiatives we need for the next decade and beyond. Additionally, we have argued for policies that would lift people out of poverty, such as extending the debt breathing space scheme and ending the two-child cap on benefits. Tackling the root causes of poverty should be a key spending priority.

“Regrettably, the Chancellor skated over these asks today, instead leaving many under-resourced gaps and unanswered questions. The glaring lack of investment in the public sector accelerates the risk of avoidable, longer-term problems festering as prevention and early intervention services get cut, leading to soaring demand for later stage crisis services. All the while, social work continues to face an acute shortage of qualified social workers, which now must be addressed in the long-awaited NHS Workforce Plan. Strikingly, there was barely any acknowledgment of social care in today’s statement, let alone the funding it needs, which is deeply disappointing.

“BASW will continue to campaign against poverty and inequality and for a better supported social work workforce and a more socially just society.”