Cuts to social housing rents, introduction of a national living wage, and further NHS funding are among Summer Budget measures likely to have marked impacts on the charity sector.

Chancellor George Osborne, delivering his first Conservative budget after five years in coalition with the Liberal Democrats, also announced further bank fine funds for defence force charities and good causes, and an increase in the employment allowance for National Insurance Contributions (NICs).

Osborne said the NHS will receive a further £8bn in funding out to 2020, in addition to the £2bn already put forward this year.

“We will fund fully the plan the NHS has itself produced for its future – the Stevens Plan,” Osborne said. “That plan requires very challenging efficiency savings across the health service – which must be found.”

The Chancellor said the government would end “the ratchet of ever higher housing benefit chasing up ever higher rents in the social housing sector”, which he said had seen rents rise by a “staggering” 20 per cent since 2010.

“So rents paid in the social housing sector will not be frozen, but reduced by 1 per cent a year for the next four years,” Osborne said.

A national living wage is to be introduced, starting at £7.20 an hour from April next year. The wage will rise to over £9 an hour by 2020, with increases to be informed by recommendations from the Low Pay Commission aiming to get the living wage to 60 per cent of median earnings by 2020.

The Chancellor said the increase in the employment allowance for NICs, from £2,000 to £3,000, will soften the impact of the living wage on small employers.

“That means a firm will be able to employ four people full time on the new national living wage and pay no national insurance at all.”

Almost £70m of banking fines has been earmarked to support military charities and other good causes.

Bank fines will also be used for a £3m fund to encourage innovative approaches including refuge provision to help those suffering from domestic abuse.

The government will seek evidence from frontline professionals ahead of the Spending Review to inform a refreshed Violence Against Women and Girls strategy in the autumn.

The Royal Commonwealth Ex-Services League has been allocated £5m and £500,000 will go to the Defence Medical Welfare Service.

“We’re supporting the incredibly courageous members of our special forces who are injured and, in the 75th Anniversary of the Victoria Cross and George Cross Association, quadrupling the annual annuity we pay to those who demonstrated the highest valour,” Osborne said.#

Access the Budget documents here.

Share Story: