Budget 2014: CPAG reaction

19 March 2014

Child Poverty Action Group responded positively to announcements of increased investment in childcare cost support through Universal Credit. But we believe that overall the Budget has done too little to help families and will lock-in austerity cuts for the long-term.

Shortly before the Budget, we published research that helps shed light on the likely consequences of the Chancellor's new 'welfare cap', which will set a ceiling on support for families, single parents, disabled people and carers. It will affect social security, benefits and tax credits for those groups and will mean that any future governments will play of these groups needs against each other in a zero-sum game. We believe it will tie the hands of future governments, making it almost impossible for them to take direct measures to reduce child poverty as part of their child poverty strategy.

We have also highlighted in our press statement today how the cumulative effect of all the Coalition's budgets is largely regressive. The poorest are the worst affected, whilst many people in the wealthier half of the population have actually been made better off as a net effect of all measures due to the size of tax cuts they have received relative to the impact of cuts on them.