Chancellor’s first Budget and relevance to the youth sector
31 October 2024
The UK’s first female Chancellor Rachel Reeves delivered Labour’s first fiscal statement “to rebuild Britain”. Headline figures include a package of £40 billion tax-raising measures alongside £100 billion in public investment over the next five years. Longer term funding commitments will be set out in the March 2025 Spending Review.
The Chancellor also announced a significant, real terms funding increase for local government next year. The £1.3bn investment is earmarked for public services whilst a multi-year settlement for local councils is agreed.
Youth services were notably absent in the fiscal statement. We await progress on a National Youth Strategy following a recent pledge by the DCMS Secretary of State, Lisa Nandy.
Our Chief Executive, Pauline Daniyan commented:
The Chancellor’s Budget was a missed opportunity to support the vital youth infrastructure that reaches hundreds of thousands of young people across the UK.
Community grassroots organisations continue to face a financial cliffedge resulting from longstanding funding cuts, exacerbated by a cost-of-living crisis.
Whilst we welcome the Chancellor’s support for children and young people, there does need to be a clear financial commitment to sustain the youth sector in the 2025 Spending Review.
Key announcements affecting children and young people
Tackling child poverty and social care
- Long-term commitment to Child Poverty led by a child poverty taskforce.
- A new fair debt repayment rate on Universal Credit payments.
- Extension of the Household Support Fund to support struggling families.
Employment
- The National Minimum Wage will rise for people aged between 18 and 20-years old from £8.60 to £10 an hourly pay increase for apprentices from £6.40 to £7.55.
- A Get Britain Working white paper will invest £240 million in16 trailblazer projects in areas where young people are most at risk of being NEET (not in employment, education or training).
Education
- An additional £2.3 billion for core schools funding, including an additional £1 billion for children with special needs.
- A tripling of investment in free breakfast clubs to £30m in 2025 and 2026.
Additional measures have been put in place for early years and Family Hubs with financial commitments on increased social care. There is also welcome additional funding of £233 million for homelessness and rough sleeping services alongside £3.1 billion for affordable housing.
We continue to make the case for a greater focus on the needs of young people, and for the dedicated youth sector that offers them somewhere to do, something to do and someone to trust.
