Autumn Budget: welcome changes to child benefit and energy bills
Now at last we know. For months we have been wondering what would or wouldn’t find its way into the chancellor’s Autumn Budget. Lisa Davis shares first thoughts on implications of the government’s latest finance statement for local CAEE clients.
Lisa is Chief Executive at Citizens Advice Epsom and Ewell (3 minutes)
Along with CA offices across the country we argued for Autumn Budget policies to help clients in serious financial difficulty.
At the heart of our case were families and individuals on the edge of crisis. The problem for many is living with a negative budget, when the cost of essentials regularly exceeds household income.
In the event we are pleased that government will end the two-child benefit cap and provide help with energy bills. Working clients will also benefit from confirmation of increases to the national living wage.
There is real disappointment however that the chancellor has not acted to improve housing benefit. From May 2026 the Renters’ Rights Act will give many clients in Epsom and Ewell new protections; but those who depend on support to pay sky-high rents will continue to find their benefit has not kept pace with the rental market.
What we hoped would change
At the top of our ‘ask’ list for the Autumn Budget were improvements in support for low-income households, housing affordability and more help with essential bills.
Social security. We hoped Rachel Reeves would repeal or radically reform:
- the limit on child benefit for more than two children (cause of widespread child poverty)
- the cap on total benefits paid to a single household (can cause even higher welfare cost)
- the 5-week wait for first universal credit payment (repayable tide over loan is new debt).
Outcome. the government will repeal the 2-child limit but take no action on the benefit cap or 5-week wait.
Essential bills. We hoped the government would take steps to bring down energy bills.
Outcome: The Autumn Budget removes levies from energy bills to save families £150, up to £300 for some poorer households.
Housing. We hoped the government would ‘unfreeze’ local housing allowance to make housing benefit better reflect local market rents.
Outcome: No change. NOTE EEBC has reported a significant increase in homelessness in the borough and the impact on council finances.
Cost crisis policy
The government’s commitment to reforming policies that affect the lives of many of the people we help is very welcome. Clients our advisers meet everyday are not coping with the cost of living crisis which is still ongoing. Headline inflation fell in October but food price inflation rose to 4.9 per cent. And the level of utility bills really does land families with ‘heat or eat’ decisions.
As ever, the run-up to this Autumn Budget saw interests on all sides competing for the ear of the chancellor. We are pleased Rachel Reeves listened to Citizens Advice and others on some key issues. Policymakers value our information and we will continue to make it available especially where it concerns local housing quality and affordability.