Budget offers light relief, rather than radical support, claims BASW
With the public finances under intense scrutiny and many public services still under greater pressure than ever, the 2026 Budget takes on immense significance for the social work sector. Against a backdrop of an uncertain economic landscape, major social anxiety, and ever-mounting pressures on local authorities, this year's Budget serves as a major opportunity for the new Chancellor, John Healey MP to unite our communities and get our country back on a path to prosperity.
The economic conditions faced across the UK continue to present key challenges. For Social Workers, who every day witness the impacts of poverty, housing insecurity, and underfunded services, these pressures translate directly into caseload complexities as well as acute workforce burnout. In addition, Social Workers are not immune themselves from tightening cost of living constraints.
What does it all mean?
The government has always insisted that meeting its fiscal rules is non-negotiable. However, public services have long been stretched to breaking point. Without much needed investment into local government and social care, statutory services will continue to pick up the pieces left from the damage of structural inequality across society.
What was announced?
While major details continue to emerge, early announcements of interest that shaped this fiscal event include:
Cost-of-living and energy relief measures including a £100 winter energy payment for lower and middle-income households (Council Tax bands A - D) in England only and scrapping standing charges for 23 million households by 2027 at the earliest.
The tax-free milage rate for those driving for business has been permanently fixed at 55p a mile for the first 10,000 miles instead of only temporarily increased. The rate per mile over 10,000 miles will rise from 25p to 35p a mile.
Fiscal devolution for Mayors with Regional mayors receiving direct shares of local income tax receipts (starting 2028), alongside moving toward 100% local business rate retention by the end of the decade.
An extra £432m designated specifically for tackling rough sleeping (bringing total commitments to £874m), alongside £1.5bn in capital funding for social and affordable housing. This applies to England only since housing is devolved.
Removing the "cliff-edge" for Carers' Allowance by ending the rule where unpaid carers lose 100% of their allowance immediately upon earning one penny over the threshold.
BASW’s Reaction
BASW has long campaigned for more action to address the ongoing cost-of-living crisis and particularly welcomes measures to redirect funding to local communities, tackle fuel poverty and rough sleeping, solidify the tax-free mileage rate increase, and bring extra support to unpaid carers. These asks are woven throughout our Manifesto for Social Work and formed much of our opening dialogue with Andy Burnham when he was appointed Prime Minister.
However, the UK Government needs to go further. Many of the systemic funding measures we would like to have seen today appear to have been rolled over into next year's spending review.
Responding to today’s statement, BASW Interim Chief Executive, Professor Sam Baron said:
“We welcome the government’s recognition of the acute pressures facing our public services, and today's announcement of targeted capital investment for social housing and a dedicated package to tackle rough sleeping is a welcome move.
“However, while immediate measures offer some relief, the government must go further. Bold action is required to fix a social care system burdened by years of systemic underinvestment. As a priority, BASW wants to see much better terms and conditions for a workforce that deserves to see sustainable, long-term funding, manageable caseloads, and direct backing for preventative services that tackle inequality at its root.
“BASW stands ready to engage with Ministers to champion the social work profession and ensure that the voice of the people we support remains central as more becomes clear with what the Government plans.”
