Resolution Foundation says UK budget offers limited relief to low-income households
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The think tank says the new budget’s energy subsidies are spread thinly across rich and poor households alike, leaving many working families and low-income households still exposed to soaring energy costs.
The Resolution Foundation warned that the latest UK budget delivers only modest help to households struggling with rising energy prices, and far too little of it reaches those most in need. According to the think-tank, the measures to ease gas and electricity costs will give the poorest half of households an average gain of £158 this year and next, just £14 more than the £144 received by the richest half, underscoring how poorly targeted the support really is.
Chief executive Ruth Curtice said the budget shows “a complete failure to target help at those who need it most” and described it as a “scattergun” approach that does little to confront the country’s economic problems. She added that “cost of living support is being spread far too thinly and will leave even those families receiving help facing higher energy bills than they did during the last energy price shock,” exposing the inadequacy of the government’s response.
The budget includes the removal of standing charges on gas bills and a £100 energy payment for up to 20 million households in council tax bands A to D, as well as tax breaks for high-street businesses and higher taxes on banks and gambling. However, the foundation noted that the scheme relies on outdated property valuations to determine eligibility, which it says hampers effective targeting and leaves too many vulnerable households outside the reach of meaningful support.
Chancellor John Healey defended the plan, stating that the UK is confronting a global economic storm and that the budget aims to “steer us through the global economic storms today” while charting a new course for the country’s future. Greater Manchester mayor Andy Burnham praised the energy-cost assistance and the removal of business rates for 70,000 firms, calling the measures “bold.”