Spring Budget 2024

BASW provides an initial reaction and summary of the UK Chancellor's Spring Budget.

There’s a scent of a General Election in the air, and the Spring Budget is a good opportunity for the Chancellor to have all eyes on him as he announces the UK Government’s fiscal plans.

During his statement, the Chancellor insisted that the cost-of-living crisis is easing, and that absolute poverty is down, and due to progress on the economy he was in a position to support working families with lower taxation.

Nevertheless, despite lower inflation levels, the UK economy is in recession, and this stands to be the biggest tax raising parliament in history.

BASW is pleased to see some measures announced in today’s statement, which for some people will provide welcome financial support. This includes extending the Household Support Fund, scrapping of debt relief orders and reforming the Child Benefit system. Although the latter will hardly help the poorest in our society.

However, BASW strongly contends the Chancellor’s claim that households are struggling any less than when the cost-of-living crisis first hit. With 4 million people currently living in destitution, including 1 million children, the scourge of poverty continues to inflict pain and hardship on too many across the UK.

Furthermore, BASW is deeply frustrated and disappointed that social care was apparently once again unashamedly sidelined in the Chancellor’s spending plans. This is a cruel political choice that continues to starve and impoverish our social care sector of essential long-term investment, putting it under unbearable and unsustainable pressure.

What did the Chancellor announce?

  • £500m for Household Support Fund to be continued at current levels for another 6 months 
  • Reform the Child Benefit system so that the High-Income Child Benefit Charge will be based on household income rather than individual earnings and raise the threshold from £50,000 to £60,000.  
  • 2p cut to employee and self-employed National Insurance
  • Abolishing £90 charge for debt relief orders 
  • Extend the repayment period for budgeting advance loans from 12 months to 24 months.  
  • The non-domiciled tax status will be scrapped and replaced with a residency-based system from April 2025.
  • Fund the NHS productivity plan in full with £3.4bn investment and an extra £2.5bn to help reduce waiting times.  
  • Duty on vaping products will be introduced from October 26 and a consultation will be published on its design.  

What happens now?

The Government will push ahead with their plans, and will likely incorporate them into their election campaign messaging. Voters will be reminded about the 2p cut to National Insurance and reform of child benefit - but will it be enough to secure the Conservatives a fourth election win in a row? 

Keep an eye on our General Election hub where we'll be keeping track of major announcements when the election is called.