In a bid to combat the escalating cost of living crisis, Chancellor Jeremy Hunt introduces measures including a tax cut and enhanced support for families, amidst concerns of an economic landscape marked by increased poverty and persistent inflation.
In recent developments aimed at addressing the cost of living crisis within the UK, Chancellor Jeremy Hunt has introduced a spring budget that includes beneficial measures for families grappling with financial challenges. Among the key changes are a 2p reduction in National Insurance tax and an extension to the Household Support Fund, designed to enhance household incomes. Despite these adjustments, there has been concern that the benefits might skew towards higher earners.
The economic landscape in the UK has been difficult, with a noticeable increase in absolute poverty over the last two years. However, a silver lining appears as inflation has dropped to 3.4%, though price hikes persist. For low-income families, April promises some relief through adjustments in Universal Credit, State pension, and Child Benefit. Moreover, the extension of the Household Support Fund for an additional six months signifies a continued effort to support vulnerable households through cash grants, assistance with energy bills, and more, facilitated by local councils.
Further assistance is accessible through budgeting advance loans, charitable grants, and reductions in council tax. Initiatives by energy providers and enhancements in childcare support also aim to ease the financial strain on families. Meanwhile, impending changes aim to broaden free childcare entitlements. An upcoming increase in benefits and state pensions in April is intended to offer some reprieve, though there is ongoing concern regarding potential real-terms reductions for those in need.
In a related update, with Easter on the horizon, the Department for Work and Pensions (DWP) has announced adjustments to the payment schedule for state benefits, due to bank holidays. Typically expected payments for Good Friday will be preemptively available on Thursday, March 28. This rescheduling affects several benefits, including universal credit, attendance allowance, carer’s allowance, and child benefit. Last November, Chancellor Hunt revealed that most benefits managed by the DWP would rise for the financial year 2024/25, potentially aiding those with medical conditions that affect work capabilities.
As Easter approaches, beneficiaries of state support are reminded to stay informed about these schedule changes to manage their finances without unnecessary stress successfully.