Too many people face future of poverty and unemployment, charities warn after Spring Statement

Britain is facing a looming crisis of debt and self-esteem, Christian charities are warning, in spite of the optimism of the Chancellor Rachel Reeves in her Spring Statement this week.

Christians Against Poverty is among those warning of an “uncertain future” with mounting numbers of people locked out of work and economic security.

Head of policy Kiri Adams said the charity regularly sees the “real people” behind unemployment figures, forecast to rise this year to over 5 per cent. “Behind that statistic are talented individuals who want to work but are being locked out of opportunity and left facing mounting financial pressure as a result.

“The Chancellor, Rachel Reeves, forecasts a brighter future but families are in a storm right now and it’s a very uncertain time in the world. Families need more person-centred, face-to-face support, like the kind our church partners offer, to help people thrive and achieve their potential.” 

According to the charity’s latest report, “Barriers to Work”, around nine million UK adults have been unsuccessful in ten or more job applications in the past year. Nearly half of those surveyed said being out of work had a direct, negative impact on their mental health.

“Work should be a bridge out of poverty, yet for millions, the job market has become a fortress with the drawbridge raised. Add in the latest news on expected energy price rises and the picture continues to look highly concerning for families on low incomes in the UK.”

The latest research by the charity also shows that in January, around 14.2 million UK adults reported having debt, excluding student loans or mortgage, that they are struggling to repay.

“We need a strategy that doesn’t just push people into ‘any job,’ but supports them into ‘good work’ that offers meaning, stability, and a liveable income.”

Catholics in Fundraising (CiF) also expressed concern following the Spring Statement, warning of further strain on churches, charities and the communities they serve.

With UK growth forecast at just 1 per cent, also warned of the impact of the Iran war on energy markets. “The renewed surge in energy prices has also dashed expectations of an imminent UK interest rate cut, further tightening conditions for households and charitable organisations alike.

“CiF believes the Spring Statement represents a missed opportunity to stimulate economic growth at a time when the country faces a renewed and damaging oil‑driven cost crisis. Forecasts showing taxes rising to 38 per cent of GDP by 2030–31, an all‑time high, alongside public debt remaining at around 95 per cent of GDP underline the difficult fiscal environment charities will be operating in over the coming years.”

Matt Parkes, trustee of Catholics in Fundraising, said: “The Chancellor’s Spring Statement paints a worrying picture for churches and charities. With growth stuck at just one per cent and energy prices surging again due to global conflict, many organisations will be facing rising costs at the very moment demand for their services increases.

“For churches and charities, higher heating and transport costs are not abstract economic indicators, they translate directly into difficult decisions about what services can be sustained. At the same time, unemployment and financial pressure on households mean more people will turn to charities for help, just as some donors are forced to cut back.

“This is a critical moment for the sector. We need to be honest about the challenges ahead, but also proactive in equipping fundraisers with the insight and skills they need to continue delivering vital services to those most in need.”

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