Juliette Flach, CAP’s Policy and Public Affairs Manager, analyses the policy announcements made in the 2025 Autumn budget, which came at a time when people are facing tight budgets and a worrying winter.
With a grey sky and a chill in the air, we sat down to watch the Chancellor make her Autumn Budget announcement. Much like the weather, people across the country are facing the gloom of financial difficulty, so this budget comes at a time of uncertainty and concern.
This winter will be a cold, dark time for those who don’t have enough income coming in to cover the costs of life’s essentials.
This winter will be a cold, dark time for those who don’t have enough income coming in to cover the costs of life’s essentials.
The Chancellor made a recognition of the challenges people are facing and made some announcements that will reduce some of the burden people are facing.
The increase in the National Living Wage, National Minimum Wage and Universal Credit Standard Allowance will help put more money in people’s pockets. Though the changes with wages will come with apprehension for some who may fear that employers may reduce the number of staff they bring or keep on.
Freezes on the cost of prescriptions, regulated rail fares and an extension of the bus fare cap, will also bring some light relief, which, alongside steps to reduce energy bills will help tight budgets.
But the major fanfare was the removal of the two-child limit. This is a policy that at CAP we have been calling for its removal since it was introduced, and will help to make progress on reducing child poverty in the UK.
Although the removal of the two-child limit will be a positive step, as this was not paired with the removal or increase in the benefit cap, the effects will be limited.
So overall, a mixed bag. The announcements made today will not bring the full relief from poverty that many need. But CAP has already fed into ongoing reviews and will be keeping close to the outcome of the Child Poverty Strategy, Universal Credit Review, Milburn Review, and Timms Review still to come.
