Spring Statement gives no help to disabled people or pensioners living in poverty in Milton Keynes, says expert

An MK disability campaigner has criticised the Chancellor's Spring Statement for not helping disabled people unable to work or pensioners living in poverty.

Nigel Long, a former local Labour councillor, runs training and consulting agency, Action Disability.

He said: "The statement does not address the needs of people on low income, pensioners and people dependent on benefits such as the disabled community...It does not help out of work households"

Nigel claims Rishi Sunak "did nothing" to address the key challenges of rising inflation, and well as soaring costs in energy, food and housing.

Experts predict inflation could hit 8% this year - the highest it has been for years.

Nigel quotes the Resolution Foundation stating: "“This prolonged period of high inflation – which millions of people have simply never experienced before – is a complete disaster for living standards. It will mean pay packets continuing to shrink, along with vital income support such as Universal Credit and the state pension."

The government is to increase welfare benefits such as Universal Credit by3.1% from April 1. But, says Nigel, when inflation is taken into account this represents a real term cut of around 4%.

"Households across the UK are facing a combination of financial challenges linked to growing inflation, rising energy and petrol costs. In addition high housing costs are making life difficult. These pressures hit low income households hard and disabled people are well represented in low income households."

Yesterday's Spring Statement increased the threshold before National Insurance is paid on earnings to

around £12,000 and pledged to cut income tax by 1% in 2024.

Nigel said: "The change to the NI benefits all tax payers whether a person is on £12,000 or £70,000. This highlights a lack of focus on low income households. The concern is that a saving of circa £330 pounds through reduced NI payments is small compared to the projected increase in average energy costs of £1,300."

Around 18 million households on standard gas and electric tariffs will see an average increase of £693 - from £1,277 to £1,971 per year. Around 4.5 million prepayment customers will see an average increase of £708 - from £1,309 to £2,017.

Nigel said the statement "gives no protection" to people on benefits.

"The government has sought to limit welfare benefits to non-working households. It has introduced a two-child limit in income-related benefits, a benefit cap (frozen since 2015), a five-week wait for the first Universal Credit payment, and unaffordable debt deductions from benefits."

He concluded: "The Chancellor's Spring statement has not addressed the fundamental challenges facing low income households, disabled people, pensioners and the growing number of people in poverty or food poverty.

"The statement does put forward a number of attractive measures that may be beneficial to certain groups of people. However, it does not address the wider challenges facing millions of low income and disabled households.

"It is a missed opportunity to help the poorest households, and disabled people will be hit hard by the impact of inflation and the rise in other costs such as food and housing.

"I give it a two out of 10. Must do a lot better."