Christian charities have responded critically to the government’s spring statement.
The Society of St Vincent de Paul described it as a “missed opportunity” which failed to provide “robust and targeted solutions to the epidemic of poverty”.
Christians Against Poverty, the debt support charity, said that it offered “very little to help the most vulnerable and to provide for the longer term financial security of those on the lowest incomes”.
The measures announced by the chancellor, Rishi Sunak, included cuts to fuel duty and business rates, the removal VAT on domestic energy-saving measures and a cut to the basic rate of income tax by the end of the parliament. He also raised the threshold at which National Insurance is paid by £3,000, amounting to a £330 tax cut for thirty million people.
Although the SVP welcomed the change to National Insurance, it expressed disappointment with other social security measures, and said the 3.1 per cent rise to benefits was insufficient and “will leave low-income households much worse off”.
The chancellor also doubled the Household Support Fund to £1 billion, which the SVP described as “simply not enough”. It also said that the VAT cut for energy-saving house improvements excluded struggling families.
“Most people feeling the financial squeeze are those who are not home-owners,” the charity said, “and therefore this measure missed the opportunity to combat climate change for all households.”
Christians Against Poverty also criticised the chancellor, saying that most of his announcements “made little to no impact” and “ignored people in the toughest situations”.
“He should have uprated benefits by seven per cent in April to help the poorest families manage through the cost of living crisis. He should have cancelled the freeze on Local Housing Allowance to reflect rising rent costs,” said Gareth McNab, the charity’s director of external affairs.
The government’s measures are a response to high inflation, far in excess of the Bank of England’s two per cent target, and spiralling utility costs, in a combination which commentators have compared to the 1970s. Rachel Reeves, the shadow chancellor, today described Mr Sunak as “Ted Heath with an Instagram account”.
The SVP also expressed concern at the lack of details on the UK Shared Prosperity Fund and any agenda for addressing the country’s economic disparity. It repeated its calls for more consultation of frontline charities on effective support for poorer families and individuals.
“The government continues to squander opportunities to lead the country out of the pandemic into a fairer and more just future built on every sector of society,” it said.
The Catholic Union of Great Britain said that, while some of the government's measures were welcome, “many people won't feel the benefits on account of inflation”.
“We need to get rid of the penalty on single earner households once and for all,” said Nigel Parker, the union's director. “With the two-child cap still in place and child benefits going up less than inflation, many larger families will really feel the pinch,” he added.
Christian Aid, the international development charity, criticised the chancellor’s failure to restore the aid budget in the spring statement, which it said “fails the world’s poorest”.
“We should not have to choose between responding to Ukraine and fulfilling our responsibilities to the poorest people facing hunger, climate and global health crises not of their making,” said Sophie Powell, its UK policy lead.
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