SFHA responds to UK Government Autumn Statement

Posted Thursday 17th November by Admin User

SFHA has welcomed plans for welfare benefits to keep pace with inflation, but expressed concern that other measures announced as part of the UK Government’s Autumn statement don’t go far enough to protect social housing tenants during an unprecedented cost-of-living crisis. 

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The Scottish Federation of Housing Associations (SFHA) has welcomed plans for welfare benefits to keep pace with inflation, but expressed concern that other measures announced as part of the UK Government’s Autumn statement don’t go far enough to protect social housing tenants during an unprecedented cost-of-living crisis. 

Earlier this month, an SFHA survey of members reported high demand for foodbank referrals and emergency fuel vouchers, including from tenants who are in work.  As a result, SFHA reiterated calls for changes to the UK social security system, including increasing social security in line with inflation and removing the benefit cap and the two-child limit. While Thursday’s budget confirmed that benefits and the cap would rise with inflation, the benefit cap and two-child-limit will remain in place.  

The Chancellor also announced that the Energy Price Guarantee would continue past April, providing some certainty on energy costs. However, this results in the new rate for a typical dual fuel bill being £3,000, representing a significant increase of over 160% from the April 2021 rate of £1,138. Those reliant on electricity for heat will face even higher costs and there remains uncertainty around the future of the non-domestic Energy Bills Relief Scheme and the impact on ‘Heat with Rent’ customers, as well as social landlords’ wider operating costs. 

Sally Thomas, CEO of SFHA, said: 

“While we welcome the UK Chancellor’s announcement on an increased windfall tax for energy firms and increased investment in energy efficiency from 2025, today’s statement confirms that the support for energy bills will become less generous from April.  

“In that context, while the uprating of social security in line with inflation will provide some help those most in need, it simply doesn’t go far enough. With soaring food and fuel costs, the benefit cap and the two-child-limit should have been removed as a minimum. Housing Associations and Co-operatives will always provide help to tenants who are struggling financially, but there must be significantly more support from the UK Government.” 

New UK Government funding on energy efficiency worth £6 billion will be made available from 2025 to 2028, in addition to the £6.6 billion provided in this Parliament. In total, the UK Government anticipates that the Scottish Government will receive £1.5bn in consequentials from this Autumn Statement. The Scottish Government is expected to publish its20 23/24 budget on 15 December, following its recent Emergency Budget Review of 2021/22 expenditure.