The Chancellor’s 2023 Autumn Statement delivered some welcome changes to social security.
Unfreezing LHA, increasing benefit rates by September’s CPI inflation, investing in Universal Support and other programmes gives respite to households on the lowest incomes.
But we believe that, after the cuts over the last decade and the cost of living pressures facing households, reforms need to go further.
Our analysis shows that benefits remain substantially lower in real terms than they were a decade ago, and inflation is hitting food, water, energy, and rental costs; all of which hit lower income families more.
- Read: Autumn Statement 2023, HM Treasury
- Read: Economic and fiscal outlook – November 2023, OBR
- Read: Employment support launched for over a million people [Back to Work Plan], GOV.UK
We recognise the positive steps made by the Chancellor however there remains an ongoing need to make it easier for people to navigate the benefit system and address structural barriers that households and local authorities still face.
We will release a series of blogs next week that examine each of the Autumn Statement’s key welfare policy announcements and the impact they will have on people on low incomes.
What the Autumn Statement 2023 delivers for low income families
- Benefits will be uprated by 6.7% from April 2024 in line with September’s CPI figures
- State Pensions will be uprated by 8.5% in line with wages as part of the triple lock
- Local Housing Allowance will be restored to the 30th percentile of local rents and updated to 2022-2023 levels after a three year freeze
- The National Living Wage will rise to £11.44, a 9.6% increase, and will be extended to everyone over 20
- National Insurance will be cut from 12% to 10%, worth an average of £450 and helping 29 million people
- Additional funding will be provided to support those seeking employment with health conditions combined with tightening the conditions and strengthening sanctions for households on Universal Credit
The Autumn Statement 2023 is positive in the fiscal changes it introduces to support claimants. It offers a step in the right direction to giving people with health conditions and disabilities the right support to get into work.
However, the plan is not without risks. Freezing personal allowances, narrowing the WCA descriptors and heightening conditionality have the effect of limiting and, at times, lessening the impact these measures can have.
It is essential for any government’s plan for growth and employment that future policies are targeted to effectively tackle barriers to work. We hope that future policies ensure the benefit system provides targeted support to households in need, and makes it simpler for households to claim all their eligible for.
Ahead of a general election, any future government must continue to invest in Universal Credit and invest in people on Universal Credit to help them realise their full potential.
Follow us on LinkedIn and X (Twitter) to read our upcoming analysis of the Autumn Statement 2023 coming soon:
- AS23: Benefit uprating: the long view
- AS23: Support versus sanctions: How can we best help people into work?
- AS23: Local Housing Allowance: What impact will the increase have on homelessness?
- AS23: The combined impact of all of these measures on your residents
Subscribe to this blog for early access to analysis on each of the five points above.
Join our webinar: Reducing barriers to work with data led campaigns
Wednesday 29 November from 10.30 to 11.45
In this webinar we will explore the carrot and stick policy changes designed to break down barriers to work and reduce economic inactivity. We will also be joined by speakers from Haringey Council to hear how they increased the take up of free childcare for two year olds to 70% and successfully helped 95 NEETs on their employment journey.
