Investment must be tangible for those in need: Policy in Practice responds to Autumn Budget 2024

Yesterday’s Autumn Budget 2024 raised taxes to allow for investment in public services. This much needed boost will need to deliver growth over the long term to pay off.
Value for money, smarter use of technology, and integrated thinking across government have long been priorities championed by Policy in Practice. It’s encouraging to see the government now embracing these proven strategies.
We welcome good news in the Autumn Budget 2024 on key measures impacting benefit claimants and low income households.
For individuals
- The Minimum Wage will be increased by 6.7% to £12.21 an hour for over 23’s and by 16.3% to £10 an hour for younger people, equivalising pay for the first time and putting more money into the pockets of low income earners
- Benefits for people of working age, including those on UC, will be uprated by 1.7% in line with inflation, providing an estimated £150 increase annually for an average UC claimant
- More than a million households on UC will be better off by an average of £420 a year thanks to a cut to the maximum debt deductions from UC from 25% to 15%
- Carers claiming Carer’s Allowance will be able to earn up to £195 a week without losing Carer’s Allowance, an increase of 29% on the current rate of £151 a week
For organisations
- With one in five people living in poverty it’s great to see support for vulnerable households expanded with a £1 billion extension to the Household Support Fund, as well as increases to Discretionary Housing Payments. This increase gives councils some certainty for local welfare assistance after three years of incremental pit stops
- The budget also awards an extra £233 million to tackling homelessness and rough sleeping, bringing the total funding for homelessness to £1 billion in 2025-26. Combined with social homebuilding initiatives this may reduce pressure on temporary accommodation in the medium term if combined with tackling unaffordable rents
Points to watch from Autumn Budget 2024
- Reducing deductions from UC will reduce harm, but may be tough for creditors including local authorities relying on deductions to keep revenue manageable
- Uprating benefits in line with an inflation ‘snapshot’ remains controversial with inflation being higher both pre and post snapshot
- Welfare fraud measures are being strengthened to 3,000 extra staff focused on counter fraud efforts. Their work is projected to save £4.3 billion by 2029-30. These efforts may increase scrutiny of benefit claimants and fear of the system, we hope to see benefit take up given as much attention as fraud
- Some additional funding for local government will create more certainty which could see wider scope for investment in data led approaches that reduce demand over the longer term
Responding to the Chancellor’s Autumn Budget 2024, Deven Ghelani, Director and Founder of Policy in Practice said:
The Autumn Budget is a step forward after many steps back, directing investment to the frontline where it’s needed most and where we know it can make a real difference. It is right to champion joined up government, smart use of data and technology as these are essential elements to drive lasting change.
Watch out for more in depth analysis from the Policy in Practice team in the days to come, and book a call to find out how you can start planning for the changes listed above now.