Spring Statement fails to support those most in need
By Carolyn Lochhead, SFHA Director of Public Affairs and Communications.
Yesterday, Chancellor Rishi Sunak gave his Spring Statement to parliament. While many were hoping there would be announcements to help offset soaring living costs, including energy bills, these have not materialised.
Joseph Rowntree Foundation’s analysis of the statement is that, without measures to help the most vulnerable, ‘600,000 people across the UK will now be pulled into poverty’, and families in poverty will be £446 per year worse off in 2022–23 compared to a scenario where benefits had been uprated in line with current inflation levels. JRF also concluded that households in poverty who are not in work – either job seeking or unable to work due to ill health, disability or caring responsibilities – will be worst affected.
So what did the statement include that affects the housing sector and tenants in Scotland?
Energy: To help households improve energy efficiency and keep heating bills down, the government will expand the scope of VAT relief available for energy saving materials and ensure that households having energy saving materials installed pay 0% VAT. It is understood that this zero rating will be for all materials and installation costs but does not cover the retrofitting of batteries to previous solar PV installations.
Taxation: The income threshold at which point people start paying National Insurance will rise to £12,570 in July.
While there is some welcome news on energy efficiency, it is disappointing that the UK Government didn’t use the statement as an opportunity to provide the support that’s desperately needed to make a real difference to people who are facing serious financial difficulty.