Budget 2010 reaction: Good but could be Better

From Citizens Advice Northern Ireland's point of view last week's budget announcement by the Chancellor has some positives for our clients; however we are concerned that the budget does not go far enough to successfully tackle poverty and social exclusion. 

The government has pledged to ensure that UK banks will offer at least a basic bank account to all customers. Whilst CAB is keen to support any measures which will tackle financial exclusion, we are unsure that this proposal as it stands will do so. If some of those people who are most in need of access to banking services remain excluded this measure will do little to achieve financial inclusion in Northern Ireland.

We also want to take this opportunity to stress the importance our clients place on the Post Office Card Account and hope the Government will, following on from recent consultation on this matter, commit to improving and extending services available from The Post Office. 

Citizens Advice is very pleased to see that the government is committed to maintaining the Standard Interest Rate used to calculate Support for Mortgage Interest payments at 6.08% until December 2010.  In these difficult economic times this support is invaluable to many people who, without it, would struggle to stay in their own homes.

With regard to Benefits and Tax Credits some positive changes were made. These included:

• An extra £4 per week child tax credit for one to two years olds from 2012;
• ensuring that people moving into work from the Employment and Support Allowance with a limited capability for work will be automatically eligible for the disability element in the Working Tax Credit;
• changes to the entitlement for help with childcare costs through Working Tax Credits, for short periods such as school holidays; and
• it will become easier for over-60s to receive Working Tax Credit by reducing to 16 the minimum number of hours they need to work to be eligible.

Whilst these are all positive moves Citizens Advice  hopes that the Government will commit more funding to ensure that benefit and tax credit take up is improved.

The budget also contained a commitment to maintain the current levels of the Winter Fuel payment  (£250 for those aged 60 or over and £400 for those aged 80 or over). This is a welcome assurance to those who rely on the payment to get them through the winter.