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Change must be felt by those in hardship - JRF responds to Budget 2024

“Today’s actions alone won’t be enough to fix the foundations for millions who struggle winter after winter in devastating hardship.”

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Responding to the Chancellor’s Budget, Paul Kissack, Chief Executive of the Joseph Rowntree Foundation said: 

“Today’s actions alone won’t be enough to fix the foundations for millions who struggle winter after winter in devastating hardship. The Chancellor is right that change must be felt. The people who needed to feel the most change are those living in and at risk of hardship. 

“Limiting the devastating impact of deductions is a good step. There was also welcome investment in social homes, help for carers to work and care, and a rise in the minimum wage. 

“It’s deeply worrying that we haven’t seen changes to social security that will seriously bring down hardship. In particular private renters will feel let down by the choice to keep Local Housing Allowance frozen meaning that it will become further out of step with local rent levels, which have soared in recent years. 

“People receiving sickness benefits also face a fearful future at a time when almost two thirds of those experiencing destitution have a long term health condition. The government has failed to explain how they will save £3bn from the benefits bill and will offer no certainty and more anxiety rather than the respect they deserve”. 

JRF has been calling on the Chancellor to use this Budget to:

  • Improve Universal Credit by embedding a minimum floor into the system, drawing a line below which a Universal Credit payment cannot fall. This would include restricting the amount of deductions taken from benefit payments.
  • Permanently link Local Housing Allowance (the rate that sets housing benefit levels for private renters) to local rent levels. This allowance is currently frozen and will remain frozen unless the government explicitly chooses to unfreeze it and link it to local rents.
  • Extend funding for local welfare assistance through the Household Support Fund, which needs to have its funding for 2025/26 confirmed and needs to be sustained while the system is reformed.
  • Scrap the previous Government’s planned deep benefit cuts for disabled people, which would push many into hardship.