Although some changes are expected to come into effect gradually, others signal more immediate implications for people and the organisations that support them. Several announcements will have a direct impact on charities and the communities they work with.
Key points include:
- 15% cuts in the administrative costs of government departments for all departments by April 2030, which will like mean additional uncertainty and less money overall to fund other things.
- The government will invest in additional employment, health and skills support from 2026-27 to help people start or stay in work. This support will focus on people receiving out of work benefits with a work-limiting health condition. The plan is for this investment to build on current support offers from WorkWell, Connect to Work and the Get Britain Working.
- Universal Credit health element (additional to standard UC) to increase to £106 from £92 per week by 2030, but is frozen for existing claimants and reduced to £50 for new claimants. There will be additional premiums for those with most severe lifelong conditions. This will likely result in additional demand on local foodbanks, debt and financial advice increased levels of poverty. This increased demand is expected to mean further pressures on the VCSE sector to offer support.
You can find more information here.
We will be monitoring any developments on these areas over the next few months. If you have any specific concerns, please contact VAL’s Helpline and we will see how we might be able to support: helpline@valonline.org.uk