An anti-poverty charity in East Kilbride has blasted the Spring Statement insisting the Chancellor has "ignored people in the toughest situations".
Debt help centre Christians Against Poverty (CAP) said it is "deeply disappointed" the UK Government has missed key routes to help people through the cost of living crisis and failed to create financial security for low income households.
The charity's response comes after Chancellor Rishi Sunak unveiled the contents of his Spring Statement in the House of Commons.
He had been under pressure to help households with the cost of living squeeze, with prices rising 6.2 per cent in the 12 months to February - the fastest for 30 years.
Mr Sunak announced he would cut fuel duty, raise the threshold at which people start paying National Insurance, and pledged to cut the basic rate of income tax before the next general election.
But with inflation surging to the highest in decades, The Office for Budget Responsibility warns that living standards will fall at the fastest pace on record.
The fiscal watchdog says the unprecedented squeeze means real living standards won’t reach pre-pandemic levels for two years.
In a statement CAP, whose aim is to reduce UK poverty by delivering debt help, money management education, job clubs and life skills groups, said: “The Chancellor said that he wants to help people with rising costs but today’s announcements do very little to help those on the lowest incomes.
“While we welcome the change to the national insurance threshold, which will ease some of the pressures on low income families, and an extension to the Household Support Fund, the other announcements made today will have little or no impact.
"The Chancellor said this was the best way to help working people through the tax system, but that is just one of the mechanisms the UK Government has available to them.
“We are deeply disappointed that the Chancellor didn’t listen to calls from across the UK asking for benefits to be uprated by seven per cent in April. Doing this would have provided targeted support to people here in East Kilbride on the lowest incomes who are being hit the hardest by the cost of living crisis."
CAP said the Chancellor has missed an opportunity to provide a longer-term fix, ensuring the social security system is linked to the real costs people face.
The charity added: “Unfortunately, there was so much the Chancellor could’ve done but didn’t. The announcements today ignored people in the toughest situations - people unable to work because of disability or ill-health, people with caring responsibilities and renters.
"We know that people in East Kilbride and the surrounding area are already struggling, many are having to make impossible choices and go without, not even able to afford the essentials. We fully expect without the right type of Government support that many more people on low incomes will be forced into destitution and serious problem debt in the months and years to come.”
If you are struggling with debt and need help, get in contact with CAP today on 0800 328 0006 or visit capscotland.org.
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