ALABARÉ’s response to the Government’s 2025 Budget
Following the Budget announcements from the Chancellor, Rachel Reeves, ALABARÉ has been reflecting on the policies unveiled.
Following the Budget announcements from the Chancellor, Rachel Reeves, in Parliament today (Wednesday, 26 November), homelessness charity ALABARÉ has been reflecting on the policies unveiled.
The charity is pleased to see changes to the Housing Benefits system that mean people in supported living and temporary accommodation won’t face reductions in their benefits payments if they increase their working hours.
Cutting that financial cliff edge has been the aim of the Make Work Pay campaign, which ALABARÉ had signed up to, alongside more than 150 other organisations in the UK.
This quirk in the benefits system has been holding people back in their push towards independence, and the announced change will help to break the cycle of homelessness for some of the charity’s clients.
Other policies in the Budget that will also support residents in ALABARÉ’s accommodation to get into employment and live more fulfilling lives include freezing regulated rail fares, extending the cap on bus fares, and freezing the cost of prescriptions.
Those measures improve the affordability of travel and healthcare, to ensure clients are better equipped to access employment and maintain their physical health.
ALABARÉ has noted the planned rise of the minimum wage, and that is an important step to support people within services who are getting into the workplace.
But it’s also an increased cost for the charity as a whole, at a time when organisations are facing huge financial pressures and the need for fundraising is increasing.
The Budget made no mention of changes to Local Housing Allowance, which ALABARÉ has jointly campaigned for with housing charities.
That campaign has been calling for benefits to be unfrozen, bringing them more closely into line with the cost of private rentals.
The Chancellor also failed to address how the long-awaited Government homelessness strategy might be funded, and how people in society who are most at risk could be better supported.
Andrew Lord, Chief Executive of ALABARÉ, said:
“We welcome the Chancellor’s decision to remove the financial cliff edge in Housing Benefits. This change will make a real difference for people in supported accommodation who want to work more hours without fear of losing vital support.
“We look forward to hearing what the Government’s plans are for the Local Housing Allowance and funding for the Government’s homelessness strategy. Without these, many of the people who ALABARÉ supports will continue to face significant barriers. We urge the Government to go further to ensure we break the cycle of homelessness.”
ALABARÉ will continue to assess the details of the Budget and how it could impact service delivery, the charity’s operations, and directly affect clients and colleagues.
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