IMMEDIATE RELEASE

Money and Mental Health respond to the Budget Statement

30 October 2024

Today the Chancellor made her Budget statement in which she announced changes including capping deductions from Universal Credit at 15% rather than the current 25% (which is something Money and Mental Health called for in our recent report into public sector debt collection), additional investment in the NHS and the intention to proceed with changes to the Work Capability Assessment (WCA) proposed by the last government.

Deputy CEO of the Money and Mental Health Policy Institute Conor D’Arcy said:

“There are a number of welcome moves in this Budget, including a lower cap on deductions from Universal Credit and added investment in the NHS. But we are deeply concerned by the Chancellor’s confirmation that the government will take forward proposed changes to the Work Capability Assessment. If introduced, these reforms will remove a vital safety net for people with mental health problems and hit many people’s incomes.

“The WCA could and should be improved. It currently does a poor job of understanding how a mental health problem affects the sorts of tasks we can do. But the proposals the previous government brought forward would go further in the wrong direction and make it even harder for people with mental health problems to get the time, support and income they need.

“The Office of Budget Responsibility’s assessment was that these changes would only lead to a small fraction of people affected finding employment. If the government truly wants to support more people with mental health problems to move towards work, they should offer tailored help when people feel able to engage with it.”

ENDS


Contact:

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Notes to Editors

  • The Money and Mental Health Policy Institute was set up by Martin Lewis in spring 2016, registered charity number 1166493.
  • We have written about the potential impact of changes to the Work Capability Assessment on people with mental health problems in this blog.
  • Our recent research report into public sector debt collection, In the public interest? includes the recommendation to lower the cap on deductions from Universal Credit. It conducts research and develops policies for essential services firms, regulators, the health service and government to help people with mental health problems protect themselves from financial difficulties and get out of debt.
  • Martin Lewis OBE, Money Saving Expert, is an award-winning campaigning broadcaster, newspaper columnist and author. He founded MoneySavingExpert.com in 2003 for £100 and remains its full-time Editor-in-Chief. It is now the UK’s biggest money site, with more than 14 million monthly users. Martin has his own prime-time ITV programme – The Martin Lewis Money Show – and is resident expert on This Morning, Good Morning Britain and BBC Radio 5 Live’s Consumer Panel, among others.