The Impact of the Spring Statement 2025 on Charities and Welfare

The Impact of the Spring Statement 2025 on Charities and Welfare

This Wednesday saw the Chancellor present the UK government's Spring Statement 2025 and with it a range of financial and policy changes that may significantly impact our members and the people they support. While we welcome some measures that offer increased support for certain groups, other measures may create challenges for those who receive welfare support and those organisations who support them.

Changes to Universal Credit and Welfare Benefits

Our members regularly tell us that the complexity of cases they receive is always increasing. Therefore, the most impactful element of the Spring Statement will be the changes to welfare.

Personal Independence Payment (PIP) Review

The government has announced a review of PIP assessments to ensure benefits are directed toward those with the highest needs. However, a new eligibility requirement means claimants must reach a certain score to receive the daily living element of this benefit. This change may reduce the number of people qualifying for PIP, potentially increasing the burden on charities that assist people with a disability.

What does this mean for charities?

The changes to welfare payments will likely have a significant impact on charities:

• Increased Demand for Support Services: Cuts to benefits for new claimants and stricter eligibility criteria may lead to more people seeking help from food banks, housing charities, and mental health support services.
• Pressure on Disability and Health Charities: With the reduction in the Universal Credit health element and tighter PIP criteria, charities supporting disabled individuals may experience increased demand for financial aid, legal advice, and advocacy.

Overall, The Spring Statement 2025 presented a complex mix of increased investment in certain areas while introducing cuts and restrictions in others. We will be working to support our members who will need to adapt to an evolving landscape where demand for their services may grow, particularly among disabled individuals, and those affected by stricter welfare rules. While the rise in Universal Credit standard allowance and increased social housing investment are welcome developments, these measures may not fully compensate for reductions in other forms of support. We will be working with our charity partners to continue raising concerns over the impact these changes will have on the people our members support.