Tough but Fair?

The new Conservative – Liberal Democrat Government announced their emergency budget today under the banner of being tough but fair.  Citizens Advice is concerned about the impact this budget will have on low income families despite the Chancellor’s assertion that the Budget “protects the most vulnerable in our society.”
 
Siobhán Harding, Information and Social Policy Officer of Citizens Advice said:

“We are concerned about the impact of the cuts announced in the Budget on our clients who are often the most vulnerable in society.  The Budget was certainly tough but Citizens Advice believes it will have a considerable impact on families and those on low incomes through the increase in VAT, the freezing of Child Benefit for the next three years and the restriction of the Sure Start Maternity Grant to the first child only.”

Citizens Advice has particular concerns with the following aspects of the emergency budget as announced today:

• Freezing the level of Child Benefit – for those on low incomes this is an essential element of family income and freezing the level of this benefit for the next three years will have a significant impact on this group.
• Limiting the Sure Start Maternity Grant to the first child only – this will impact on families with low incomes who may experience real financial pressures at the birth of their second any subsequent children.
• Abolishing the Health in Pregnancy Grant of £190 for all pregnant women
• Lone parents will be expected to look for work when their youngest child goes to school.
• Removal of the baby element of tax credits which is paid during the first twelve months of a baby’s life and the reduction of the backdating from 3 months to 1 month. This is often the most expensive time for families and will have impacts on some of the most vulnerable families.
• Shift in DLA from being a self-assessed benefit to claimants being subjected to a medical test.

Citizens Advice welcomes George Osborne’s announcements of measures designed to help pensioners and the increase in child tax credit which will provide some additional support for families in poverty.