We have seen today from our Chancellor a budget statement which for many will have appeared to tick some key boxes. Focusing tax increases on those who earn the most, announcing some big numbers in relation to the NHS, social care and education, and confirming the commitment to linking benefits and state pensions with the rate of inflation will be popular and appreciated in many quarters.
But the truth is, there was cold comfort for those in our communities who are already desperate about how to make ends meet, to be able to heat their homes or feed their children and with the OBR today reporting that real household disposable income is set to fall more than 7% over the next two years, we will see even more people pushed over the edge into poverty. Measures such as the extension of the energy price guarantee and the cap on social rents are of course not unwelcome. But if you can’t afford to pay a £50 bill now, getting a bill that is £60 rather than £75 doesn’t make it any more affordable, and there is little in today’s statement that will make a real difference to hundreds and thousands of households who are already turning to foodbanks and other charities in order to survive day to day.
Meanwhile, expectation of efficiency savings and no real terms inflationary increase in funding for local authorities and other public spending will inevitably mean continued pressure on civic services – whether that is a further reduction in already badly creaking children’s services, reductions in opening hours of libraries and community centres that provide a warm space and community connection for isolated or vulnerable people, or the withdrawal of after school services for young people at risk of falling into crime. Despite the Chancellor’s aims to showcase British compassion, more people will fall through the cracks, and more people will turn to charities for the support they desperately need.
Across our sector, charities will be continuing to raise their concerns about the impact of the cost of living crisis on the people they serve. They will continue to try to deliver that desperately needed support. But they will be wondering how much more demand they can absorb, and what happens when even the safety net our sector provides can cope no more.
