What does the 2023 Autumn Statement say for poverty?

Earlier today, Chancellor Jeremy Hunt announced his Autumn Statement for 2023. As anticipated, amongst the announcements was an increase to benefits (unexpectedly, however, in line with September’s inflation of 6.7%), a welcome increase to Local Housing Allowance, and the introduction of much harsher sanctions on the welfare system.

As an organisation facing the realities of the cost-of-living crisis for our service users, we do welcome the relief that policies such as unfreezing the housing benefit will allow people. That being said, it is to be questioned whether the announcements being put in place by the Chancellor will do enough to combat the absolute crisis that many families find themselves in today, with an out of reach housing market, rapidly rising food prices, and a crackdown on access to benefits which some are simply using to get by.

The most striking announcement for us was Jeremy Hunt’s intention to place stronger sanctions on the welfare system, deeming the current system “morally wrong, and economically wrong”.  Hunt wants to reform the fit notes process so that it is assumed that people can work, meaning they will also have to work from home should they be out of work for mobility or mental health issues. The largest sanction, however, is his plan to get 200,000 people back in to work by enforcing mandatory work experience following 18 months of help from the government – if people do not participate, their case will be closed and their benefits stopped.

Even prior to the official statement today, this has been criticised as ‘punishing’ those using the welfare system following comments from chief secretary to the Treasury, Laura Trott, stating that “there is a duty on citizens if they are able to go out and work, they should”.

As for the rise in Local Housing Allowance, there is also a long-term issue. The Institute for Fiscal Studies have warned that this solution is only temporary as rates would become frozen in the future, despite providing respite from “huge affordability pressures facing private renters on benefits”.

Big Help Project CEO, Peter Mitchell, responded regarding harsher sanctions on benefits here.