Colin Joseph from Citizens Advice Barnet looks at the implications of last week’s decisions

The UK parliament buildings viewed from across the river – (Credit – David Floyd)

The Autumn Budget last week focused on tax rises and public spending plans to help boost economic growth, but there were also announcements which will affect many of Barnet’s most vulnerable residents.

At Citizens Advice Barnet we help around 1,000 people each month on a range of issues including benefits, housing and debt. Many are struggling to make ends meet and this is only exacerbated by the cost of living crisis.

Benefits, housing and debt make up more than half of the enquiries that we receive on a daily basis. A large proportion of these focus on claiming Universal Credit or Personal Independence Payment, a benefit for people with a disability or long term health conditions. Debt support (including fuel debt) also make up a lot of the enquiries we receive from Barnet residents.

The impact of Chancellor Rachel Reeves’ budget will be very significant for many of the people we help – especially those who have money worries or who are claiming benefits.

As expected the budget has positives and negatives for many of the clients we see here in Barnet.

On the positive side there will be:

An increase in the maximum earning threshold for full-time carers without losing government support
Greater protections for Universal Credit claimants impacted by debt deductions by lowering the monthly level of deductions to 15%, rather than the current 25%
An increase in the state pension
An extension of the Household Support Fund and Discretionary Housing Payments for an additional year
An increase in the Minimum Wage for workers which is set to rise in April next year.

This will all be welcome news to many and will help put pounds in the pockets of many Barnet residents who are struggling financially.

But there were also negatives in the budget announcement which will hit hard. These include:

A crackdown on fraud in the welfare system to prevent “illegal activity”, including having “direct access to bank accounts to recover debt”

A continuation of the previous government’s plan to reform the work capability assessment, making it more difficult for people with a health condition to get support

No u-turn by the Chancellor on the government’s winter fuel payments initiative which will stop millions of pensioners from accessing payments to help with heating bills this winter
No support announced for energy costs
The two-child limit on benefits is to remain in place
The re-freezing of Local Housing Allowance, which will cause a greater rift between people’s rent and the support available to help pay it.

We expect to see an increase in issues with the work capability assessment changes following the Chancellor’s budget. We are also preparing to deal with more enquiries from Barnet residents about fuel debt, rent arrears and threatened homelessness.

We will continue to give the people of Barnet the knowledge and confidence they need to find their way forward – whoever they are and whatever their problem.

Colin Joseph is a research and campaigns volunteer at Citizens Advice Barnet.

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