UK Government Spending Review is a missed opportunity to provide vital adjustments to Personal Independence Payments
While welcoming some measures designed to support low-income households, the charity says the Government’s failure to provide any meaningful adjustments or reassurance for those on health-related benefits, is leaving them to face continued uncertainty.
Whilst the Spending Review included some welcome announcements — such as confirmation of Winter Fuel Payments, expanded eligibility for free school meals, and additional support to help people into work — it also missed a crucial opportunity. The Government failed to take any meaningful action on health-related benefits, such as PIP. As a result, too many disabled people, including some of our clients, are still left facing uncertainty and anxiety about their financial future.
Kiri Adams, Head of Policy at Christians Against Poverty
Positive steps for low-income households welcomed
CAP has acknowledged several positive measures in the Spending Review that will directly help those on low incomes. The charity was pleased to see the confirmation of winter fuel payments for pensioners, the extension of free school meals, and new investment in affordable housing.
Ms Adams added: “These steps are meaningful — they will help families struggling with rising living costs keep warm, feed their children, and, in the long term, secure stable housing. The focus on getting people into work and growing the economy is also encouraging, provided it leads to fair, secure, and properly paid employment for those who can work.”
There was also good news on the creation of a permanent £1bn Crisis and Resilience Fund, replacing the Household Support Fund. Having a multi-year commitment helps to ensure that councils can plan their support in a sustainable way.
Significant gaps leave most vulnerable at risk
However, CAP is disappointed that the review did not include targeted support for those who are unable to work due to illness or disability, or a clear commitment to uplift working-age benefits in real terms. The charity noted that a lack of detail on how quickly new homes will be delivered, and no action on rent reform or the Local Housing Allowance, leaves urgent issues unresolved for those they help.
Urgent Government action needed to prevent deepening debt crisis
Looking ahead, CAP is urging the Government to take greater responsibility and provide more funding in three critical areas:
Welfare support: Social security levels must be set at a level sufficient for people to live on. A significant number of CAP clients have a deficit budget, meaning their essential outgoings are already more than their income each month, pushing them deeper into debt.
Poverty alleviation: With the government’s child poverty strategy delayed until the Autumn, urgent action is needed now to tackle the high levels of child poverty pulling many households under.
Debt advice funding: The free debt advice sector is under growing strain, grappling with increasingly complex cases that demand more time, care, and resilience from advisors. Sustainable funding is essential.
CAP has flagged that if ministers fail to address these areas, the cycle of poverty and debt will deepen. More people will fall through the cracks, demand for crisis services will rise, and already-stretched frontline organisations will struggle to cope, leading to wider social consequences including increased homelessness and poor health outcomes.
