BASW reacts to UK Budget
Kerri Prince, BASW Public & Political Affairs LeadBASW will continue to be a firm, but constructive voice with Ministers in the months ahead.
The country watched in anticipation to hear how their lives and finances might change under a brand-new government.
For the past 14 years, successive Conservative governments have largely approached budgets in a similar way - lower taxes but less spending on public services. It was simple enough to predict what might be announced. But a new party in government means a new approach to public finances, and previous beneficiaries of government spending plans may no longer benefit.
BASW made a submission to the Treasury ahead of the budget on what we wanted the Chancellor to announce, which included more spending on social care, tackling poverty, and giving local authorities the long-term funding needed to deliver local services.
What are the big announcements?
Incomes
- The minimum wage is being increased to £12.21 per hour
- Rate for 18 to 20-year-olds to go up from £8.60 to £10, as part of a long-term plan to move towards a "single adult rate"
- All working age benefits will be uprated by 1.7%
- Eligibility widened for the allowance paid to full-time carers, by increasing the maximum earnings threshold from £151 to £195 a week. Carers Allowance will also go up to £83.29 per week.
- The state pension will rise by 4% in April 2025
- ‘Get Britain Working’ white paper to look at getting more people into work
- Income tax thresholds will be unfrozen from 2028 and uprated in line with inflation
- Creation of a new Fair Repayment Rate which caps debt repayments made through Universal Credit at 15% of the standard allowance, meaning that 1.2 million households will keep more of their Universal Credit
Taxes
- Employer National Insurance Contributions will be increased (not employee)
- Frozen income tax and national insurance thresholds
- Capital Gains Tax has increased
- VAT will be added to private school fees from 1st January
- Windfall tax on the profits oil and gas firms make in the UK will increase from 35% to 38%
Health and social care
- Extra £1.57bn next year for the NHS in England, to pay for surgical hubs, scanners and radiotherapy machines
- £22.6bn increase in day-to-day NHS spending
- £3.1bn increase in NHS capital budget
- Real terms increase for local government funding
- At least £600m of new grant funding for social care
Children
- Free breakfast club funding will be tripled
- More funding for SEND provision by providing a £1bn uplift
- New funding for kinship and fostering measures
Other changes
- The single bus fare cap is being increased from £2 to £3. The £2 limit was due to expire in December. (England only)
- £230m funding for tackling homelessness
- Fuel duty will be frozen
- More affordable homes, with £5bn invested into house building
- £3.4bn for the Scottish government to be spent on improving public services
- £1.7bn to the Welsh government
- £1.5bn to the Northern Ireland executive
Speaking in response to the budget, BASW UK Public & Political Affairs Lead, Kerri Prince said:
“There is no denying that any government would have to make tough decisions due to difficult economic circumstances, but BASW has been clear that budgetary decisions should seek to lift people out of poverty, better fund social care and invest in public services that we all depend upon.
“We are pleased that overall, this budget appears to take the first steps to fixing public finances. An increase in the minimum wage and state pension puts more money back into the pockets of people on some of the lowest incomes. However, with the UK facing record levels of hardship, stronger measures are still needed, including scrapping the two-child limit.
“More money for the NHS, social care, and local authorities is a welcome start but given the severity of the problems in these areas brought on by years of chronic under-funding and neglect the government cannot underestimate the need for more investment. £600 million funding for social care, for example, is only scratching the surface of what’s needed.
“We will keep pressure on the government to ensure that they meet their obligations to support those most in need across the country. This means continuing to be a firm, but constructive voice with Ministers in the months ahead.”
BASW UK Chair, Julia Ross added:
“It was exciting to witness the first ever woman Chancellor delivering a UK Budget, and the first time in many years I have seen a real determination from a Westminster government to make the economy work as a whole.
“There were some good announcements for social work and the people we work with and, although it may not be as radical as some would like, I’m happy for BASW that it moves us in the right direction and with a vision for better days.”
What are your views on the UK Budget?
You can share your views with BASW by contacting kerri.prince@basw.co.uk
Also, reach out to your MP and tell them how they can better support social work, social care, and people who use services. You might also want to alert them to our manifesto asks and find out if they would be willing to work with us to deliver any of them.
