Resolution Foundation says UK budget offers limited relief to low-income households
The think tank argues that the new budget's energy subsidies benefit rich and poor households almost equally, leaving many still facing higher energy costs.
The Resolution Foundation warned that the latest UK budget provides only modest assistance to households facing rising energy prices. 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, indicating limited targeting of support.
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 address the country’s economic challenges. 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.”
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 However, the foundation noted that the scheme relies on outdated property valuations to determine eligibility, which it says hampers effective targeting.
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.”