Housing, social care and universities: who's losing out on the UK budget? | Fall 2024 Budget

Rachel Reeves' first budget highlighted tax rises to help the NHS as it tries to cope with huge waiting lists and an aging population. Funding the NHS has been a top priority, but others in other sectors, from universities to social care, believe the budget has missed an opportunity to tackle the impending crisis or introduce much-needed reforms in the sector.

social welfare

Experts have long warned that it will be difficult to fix the NHS without councils in England and Wales tackling the crisis in social care, which is struggling with thin budgets and staff shortages. Local authorities have been given a $600 million injection of funding for social care, which the Local Government Association said would help meet some, but not all, of the severe pressures on adult and children's social care and homelessness support. .

But the government has offered nothing on the wide-ranging system reforms expected to be needed in the long term. The Health Foundation think tank said: We welcome the additional $600 million for social care and reform of carer allowances, but the continued silence on wider social care reform is disappointing.

The sector will also be hit hard by the Government's rise in employer national insurance premiums, with the Liberal Democrats calling for social care to be exempt from the rise.

child poverty

One of the biggest demands from Labor MPs since taking office has been to overturn the UK-wide two-child benefit limit, which is contributing to child poverty. Reeves made no mention of his ambitions to scrap it in his budget speech, despite personally wanting the change. Campaigners would have liked to see a greater Gordon Brown-style focus on lifting children out of poverty. Her speech barely mentioned child poverty, apart from a brief paragraph on the impact of reducing the level of overpayments deductible from universal credit. In response to the budget, the SNP called on the Labor government to take urgent action to tackle child poverty, while the Solutions Foundation think tank warned an extra 63,000 children would be hit by the two-child benefit cap by April. I did it.

Former Labor leader and independent MP Jeremy Corbyn, Green Party co-leader Adrian Ramsay, Carla Denyer, Plaid Cymru MP and others wrote in a letter to the Guardian. They called on the government to increase the two-child allowance by more. Implement a cap, reverse the withdrawal of winter fuel quotas, introduce a wealth tax and introduce a new green deal. Labor is increasing defense spending to 2.5% of GDP and saying it does not have the money to lift 250,000 children out of poverty. This is a lie. They said it was just a lot of money getting into the wrong hands.

mental health

Mental health charities operating in England and Wales are disappointed with their budgets. Dr Sarah Hughes, CEO of Mind, said it had failed to deliver the change needed to create a mentally healthier nation. The Budget enshrined funding for mental health crisis centres, but charities have been pushing for more support to stop people reaching crisis point, warning that although mental health accounts for 20% of all illnesses, it only accounts for 10% of NHS spending. I pointed out that I was going. The sector is concerned about cuts to sickness benefits as costs have risen in part due to poor mental health. Details about potential changes to benefits have not yet been specified.

university

Before the budget was passed, it was widely reported that the British government was planning to allow tuition increases or system reforms. Although this has not materialised, the figures suggest it will be allowed to rise in line with inflation from next year. This will provide some relief to university presidents, but at the same time institutions will have to accept higher bills for national insurance premiums. Despite the sector's inclusion on Sue's List, a risk register said to have been drawn up by former chief of staff Sue Gray before the election, which highlights the risks that could arise in the first months of a Labor government, it appears wider reforms will have to wait. Universities are concerned about their financial situation, with inflation soaring and tuition fees frozen for a long time, and there have long been warnings that individual institutions could go bankrupt.

housing crisis

Some charities have called for a local housing allowance set to lift the freeze on housing benefit levels across England, but the Prime Minister has not delivered on this. The Joseph Rowntree Foundation said the decision to freeze local housing allowance would leave private renters feeling let down, putting them further out of sync with local rent levels which have soared in recent years.

The Women's Budget Group think tank said: Reintroducing the Local Housing Allowance freeze would be deeply disappointing for hundreds of thousands of households struggling in temporary housing or facing eviction. Last year, as the gender gap in housing purchasing ability widened, private rental costs increased and accounted for a larger proportion of women's income. The average rent for a one-bedroom property in the UK currently accounts for 47% of the median income of women. This is an increase from 36% last year, when men accounted for 34% and 26%, respectively.

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