Autumn Budget a ‘missed opportunity’ to help charities, sector leaders warn

Charity sector leaders have criticised Chancellor of the Exchequer Rachel Reeves Autumn Budget for "missed opportunities" to support the sector.

A lack of help to reduce charities’ energy bills is among concerns raised by Social Investment Business (SiB).

While Reeves’ Budget removed three quarters of the cost of the legacy renewables obligation, this is limited to domestic bills. Similarly the Energy Company Obligation is to end, which is not levied on charity bills “meaning neither of these reforms will impact the energy bills for charities”, says SiB.

However, a nuclear levy will be included on charity energy bill, it adds.

“Lowering electricity bills is critical for achieving our net zero ambitions, but today's reforms fall short of tackling the energy crisis for charities, and will instead push the sector deeper into relative fuel poverty,” warned SiB chief executive Nick Temple.

Hospice care

Meanwhile, Nick Carroll, chief executive of Together for Short Lives, is concerned about a lack of support in the budget for the hospice and palliative care sector.

“Amid workforce shortages and a rising demand for more complex children’s palliative care services, the cost of recruiting and retaining skilled and experienced staff is soaring,” he said.

This will be acerbated by “more pressure” from minimum wage increases unveiled in the Budget, he said.

Carroll welcomes a recent commitment by the government for an extra £80m in funding for children’s hospices in England.

“However, a £310 million gap in NHS funding for children’s palliative care in hospitals, in the community and in children’s hospices, remains,” he warned.

Housing

Elsewhere, Emma Haddad, chief executive of homelessness support charity St Mungo’s welcomed a measure in the budget to “address the long-standing anomaly in the benefits system that discourages people in supported housing from entering work”.

“This change follows years of persistent campaigning from St Mungo’s and the wider sector. It is reassuring to know our voices have been heard,” she added.

But she warned that “we cannot ignore that we are in the middle of a homelessness crisis, which is being driven by a persistent shortage of affordable and social housing”.

She is particularly critical of Reeves decision not to unfreeze Local Housing Allowance rates which “is disappointing and a missed opportunity.”

This “would have protected thousands from homelessness by bringing housing benefit in line with real rental prices”.

She added: “It is clear only so much progress can be achieved within our overstretched system without any additional funding.”

Tom Darling, director at the Renters’ Reform Coalition is also concerned about the government’s “refusal to increase” the Allowance.

“Overall, this is not a renters' budget - the continued freezing of housing benefit means tenants on low incomes will continue to struggle to keep a roof over their head while paying for the essentials,” he said.

“Soaring rents are a major cause of homelessness, driving renters out of their homes or into poverty, and refusing to increase housing allowance means many families will remain trapped in emergency homelessness accommodation, unable to afford to move."

Further reaction

Further reaction to the Budget from the charity sector has included a welcoming of the decision to end the two-child benefit cap.

Mary Glasgow, chief executive of Scotland based children’s charity Children First said the cap’s scrapping “is long overdue”.

Freezing of income tax thresholds until 2031 has also raised concerns, particularly concerning its impact on donations and household finances.



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