What does the Autumn Budget mean for disabled people with complex needs?
People have been talking about the Budget for weeks. And yesterday, the Chancellor of the Exchequer, Rachel Reeves, finally set out her plans for the country’s finances.
So what do yesterday’s announcements mean for disabled people with complex needs?
Ending the two-child limit
The big measure making the news is the Government’s plan to end the ‘two-child limit’.
At the moment, the two-child limit means someone only gets extra Universal Credit for the first two children they have. If someone has any more children, they don’t get any extra support from the Government.
The Government has now announced that it will scrap the two-child limit. This is good news for many families. But it won’t necessarily help many families with disabled children, who were already exempt from this policy.
And many families with disabled children are struggling. Sense research shows two in five parents of disabled children cannot heat their home properly in winter, and the same proportion are skipping meals so their child can eat.
This should be unacceptable in modern Britain – and it’s time the Government did something about it.
Benefits will go up in line with inflation
Every year, the Government automatically puts up some benefits, including Personal Independence Payments (PIP), in line with rising prices. But the Government doesn’t have to do this for benefits like Universal Credit, although it usually does.
Yesterday, the Chancellor announced that Universal Credit will go up in line with inflation. This is good news. But it doesn’t change the fact that benefits are too low in the first place.
Sense research has found that 43% of disabled people with complex needs on benefits are in debt because their welfare payments don’t cover the essentials.
So we welcome the fact benefits will go up in line with prices – but we need to see the Government doing more to help disabled people on low incomes.
Future changes to welfare?
By working with campaigners like you, Sense was able to force the Government to rethink its plans for benefits cuts earlier this year.
We’re glad the Chancellor didn’t announce any other changes to welfare yesterday. But we are concerned about what they might do in the future.
We’re particularly worried about the Government’s proposal to cut the Health Element of Universal Credit for disabled people aged 16 to 21. That would mean young disabled people who apply for benefits in the future would be eligible for £50 a week less in support. The impact of that would be huge.
Changes to the Motability scheme
The Government also announced some changes to the Motability scheme. This scheme allows people who receive Personal Independence Payments (PIP) to lease specially adapted vehicles. This isn’t a ‘free car’ as some people say – it is paid for with the mobility component of someone’s PIP.
Some people make an advance payment to receive a more expensive car under the scheme. As a result of the Budget, this payment will no longer be exempt from VAT. Vehicles that are adapted for wheelchairs, however, will still be exempt from VAT.
Motability say nothing will change for people who already lease cars. You can read more about any other changes that might affect new recipients on the Motability scheme website.
What next?
The Government say they haven’t made a decision on whether they will go ahead with the plan to cut the Health Element for young people yet.
We’re hoping that this is a sign they might be rethinking the proposal. But we’re calling on the Government to put minds at rest by making it clear that they won’t go ahead with the cut.
By working with our supporters, we made them think again last time. We hope to do the same again.
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