Delivering her Statement to the House of Commons today (26 March), the Chancellor, Rachel Reeves, announced the health element of Universal Credit will be be frozen for current claimants and reduced for new claimants. Personal Independence Payments (PIP) will also be restricted.
Charities have warned that the move will negatively impact children already in poverty.
The National Children’s Bureau (NCB) said that by the Department for Work and Pension’s own admissions, the ‘combined effect of the package of welfare reforms will push tens of thousands of children deeper into poverty and make life harder for millions more.
It added, ‘Many families struggling to make ends meet rely on the welfare system to stay afloat. Cuts to health benefits will only cast them further adrift.’
Similarly, the Child Poverty Action Group argued that the ‘stealth social security cuts bring neither stabilty not security to struggling families and will push child poverty even higher.’
It’s chief executive Alison Garnham explained, ‘Growth and better living standards are not achieved by taking money from families with the least. Government must invest in social security support - not cut it - for the most vulnerable, or risk being remembered as the Labour administration under whose watch child poverty continued to rise.’
Paul Kissack, chief executive of the Joseph Rowntree Foundation (JRF), commented, ‘With living standards for the poorest under continuing assault, the Government needs to protect people from harm with the same zeal as it attempts to build its reputation for fiscal competence.’
Lack of support for early years
The Early years and schools sector expressed their disappointment that the Chancellor failed to announce any specific support.
Neil Leitch, chief executive of the Early Years Alliance, said, ‘If the Government is truly serious about both growing the economy and ensuring that every child gets the best start in life, surely it has no choice but to invest in the sector that can help it do both. The sooner the Government’s actions on the early years start matching its rhetoric, the better for everyone.’
Both the National Day Nurseries Association (NDNA) and Early Education and Childcare Coalition argued that for the Government to be able to boost the economy as it wants to, it needs to take action on early years funding.
Purnima Tanuku, chief executive of the NDNA, said, ‘The national scandal that is underfunded early education and care will put Government plans to boost the economy, get more people into work and expand funded childcare places at risk. The lack of level playing field with maintained sector provision and restrictions imposed on private and voluntary nurseries to deliver high quality early education and care will stifle businesses and threaten their sustainability.’
Sarah Ronan, director of the Early Education and Childcare Coalition, said, ‘If the Government sees childcare as the route into work and out of poverty, it must act like it, widening eligibility for the 30-hour offer and investing properly so that the families who need it the most can access it. That’s the only thing that will get more parents into work and drive growth.’
The National Education Union said that the Spring Statement will cause ‘deep anger among education staff because it doesn’t address the key issue, a lack of funding’.
General secretary Daniel Kebede explained, ‘Children get only one chance to go to school and college, and education staff expect Government to deliver enough funding for safe school buildings, experienced teachers, appropriate class sizes and pastoral and SEND services.
‘Cuts to funding and huge real terms pay cuts of a fifth since 2010 have made teaching less attractive and the serious recruitment and retention issues are now plain for all to see. Children are losing out.
‘The NEU backs calls for a wealth tax and rejects the concept that cutting welfare will boost employment or grow our economy. The two-child limit and any further cuts to welfare will directly and immediately worsen the life chances for thousands of children. Talk of “efficiency” savings in education is incendiary when teachers are spending their own salaries on what’s needed in the classroom.’
While there was little in the Spring Statement on education, the National Union of Head Teachers said that school leaders will be anxious to understand what the impact of some of the Chancellor’s headline announcements on public finances will mean for schools – including the reduction in day-to-day spending above-inflation in future years and the annual increase in capital funding.
General secretary Paul Whiteman explained, ‘School budgets remain under severe pressure after years of under-investment. It will be absolutely vital that they are protected and built upon in the multi-year June spending review, with additional funding urgently needed for core services, supporting children with educational needs, and the school estate.
‘Without sustained long-term investment, it will only become more difficult for school leaders to provide the learning experience all pupils deserve.’
