AdviceUK welcomes some positive moves announced in last week’s Budget statement and, in particular, the decision to lift the punishing two-child benefit cap. This is a change our members have long called for and is a clear sign that the Government is listening to the advice sector. Other welcome announcements include measures to address the cost-of-living crisis and the overall uplift to the Ministry of Justice’s (MoJ) budget. We will advocate for the MoJ to use its investment to support the independent advice sector. However, the Budget reaffirms the Government’s plans to reform welfare, which could negatively impact millions who are most in need in our society, and, in turn, increase demand on the already overstretched advice agencies that support them.
To see our media statement, click here, and to read the Budget in full, click here.
AdviceUK strongly welcomes the abolition of the two-child benefit cap, which has driven hardship for thousands of families. Many of the households accessing our members’ services have been directly harmed by the restriction, so this is a vital step toward reducing child poverty. Government figures estimate that 450,000 fewer children will be in poverty by 2029-30 as a result of lifting the cap.
However, the Budget also reaffirms the Government’s ambitions to impose wider welfare reforms, including:
For both of these, we would appreciate members getting in touch to send us an expression of interest to engage with the reviews.
Measures on benefit fraud – The Government has confirmed its plans to tackle “fraud and error in the welfare system”, including by expanding Targeted Case Review, which it says will save an additional £1.3 billion in 2030-31.
The Government’s direction of travel poses a significant threat to the welfare system. Past changes, as well as previously proposed reforms, to disability benefits have too often risked increasing hardship, pushing people into debt, and intensifying pressures on the NHS, local authorities and advice agencies. AdviceUK members already report rising complexity in casework, increasing appeals, and growing mental-health impacts linked to the benefits system.
AdviceUK urges the Government to proceed with caution and to commit to no further damaging cuts to welfare. Any future reforms must be co-designed with people relying on the system and the advice services that support them. Our members’ expertise is essential to avoiding unintended consequences and ensuring changes are fair, workable and supportive rather than punitive. Furthermore, it is important that the Government recognises that benefit fraud is a very minor part of the welfare budget and that their proposals could risk overly monitoring vulnerable claimants while not improving the effectiveness of the welfare system.
We welcome several measures aimed at easing household pressures, including:
These steps will offer some relief to people facing persistently high costs. However, many low-income households remain in acute financial distress, with debt and soaring bills. The Budget’s measures are welcome but insufficient. For example, we want to see the Government better fund the advice agencies that help those struggling with the cost-of-living. We will continue to call for a strong Energy Debt Relief Scheme and other measures to protect consumers, such as an expanded warm home discount scheme.
AdviceUK welcomes the decision to move forward with establishing 250 Neighbourhood Health Centres, a major opportunity to improve access to joined-up support in communities. This aligns strongly with evidence from many of our members that integrated advice and health interventions improve outcomes, reduce pressure on NHS services and prevent crisis.
However, we are concerned that the Budget does not set out how social welfare advice will be included in the Neighbourhood Health Centre model, as has been previously reported. Many people accessing these new hubs will face intertwined issues: benefits problems, debt, housing insecurity, employment barriers and health conditions. Without embedding specialist welfare and debt advice, these centres risk missing a critical component of effective early intervention and prevention.
AdviceUK is therefore seeking urgent assurances from the Government that:
The Government’s plans to support young people into work through the Youth Guarantee are welcome. A commitment that every 16–24-year-old will have access to education, training, or work is an important step. As is the introduction of the Growth and Skills Levy, which will replace the current Apprenticeship Levy, which will mean that funds can be used for a wider range of training, not just full apprenticeships. The levy and the Youth Guarantee will be supported by £1.5bn over three years. Furthermore, the Budget confirmed that the levy will be used to fund initiatives, including free apprenticeships training for under-25s in small and medium-sized enterprises (SMEs). We will push for advice agencies to be eligible for the skills support announced in the Budget.
While this investment is welcome, AdviceUK urges the Government to adopt a National Advice Workforce Strategy for England, Scotland and Wales. We know that fully resourced and funded advice agencies are a net economic positive for the public purse, so bringing the sector along in the skills agenda is paramount. A strategy led by the Government, working in partnership with the advice sector, could provide the long-term confidence that our members desperately need. It is important that advice is recognised within the Government’s skills agenda. Such a strategy should:
The Autumn Statement contains several welcome steps on poverty, household costs and youth opportunities. But these commitments will not achieve their potential without a properly funded and supported advice sector.
Independent advice agencies across the UK remain under intense pressure, with chronic underfunding, staff shortages and demand exceeding capacity. Without investment in the advice workforce and infrastructure, the plans set out in this fiscal statement, whether on welfare, energy bills, skills or health reform, cannot be realised.
