Title: Spring Budget 2024: Concerns Over Unfair Benefits for Higher Earners Amid Cost of Living Crisis
In his spring Budget announcement, Chancellor Jeremy Hunt unveiled a 2p National Insurance tax cut, changes to Child Benefit, and a new “British Isa”. However, concerns have been raised by experts that these new measures may disproportionately benefit higher earners. The Resolution Foundation economic think tank pointed out that those earning £50,000 or more stand to gain the most from the NI cut.
The economic backdrop remains challenging, with the UK officially entering a recession at the end of 2023. Inflation is steady at 4 per cent, well above the government’s target of 2 per cent. The cost of living crisis continues to impact millions, with bills, food prices, and rents remaining high.
Research from the Joseph Rowntree Foundation (JRF) revealed that 73 per cent of low-income families on Universal Credit experienced food insecurity towards the end of last year. One in six reported turning off their fridge or freezer to save money.
As the cost of living payment scheme comes to an end, the government has not announced any plans to extend it beyond February 2024. Eligible recipients should expect the final payment of £299 between February 6 and February 22, 2024.
Various forms of financial support are available for low-income families, including the Household Support Fund (HSF) extended for 6 months, budgeting advance loans, charitable grants, and assistance from energy providers. The energy price cap is set to decrease in April, providing some relief to households.
Benefits and state pensions are set to increase in April 2024, with benefits rising by the September rate of inflation and state pensions by 8.5 per cent. However, concerns have been raised about the benefits cap potentially pushing more people into poverty.
If you have been affected by the cost of living crisis or have a story to share, you can contact us via email at albert.toth@independent.co.uk. Stay informed with the latest news by signing up for our free Morning Headlines email.