Church Army responds to the Spring Statement

27 March 2025

Following the Spring Statement from the Chancellor Rachel Reeves yesterday (26 March), we are concerned for what this means for the poorest people across our nations. While there are some welcome changes and updates, the news in this statement will not alleviate poverty for so many of the people Church Army supports and loves, and we remain concerned about the hardship people and communities are enduring.

We work with some of the most vulnerable people and communities across the UK and Ireland, individuals facing the brunt and harsh reality of the cost-of-living crisis that continues. Many of the people who come to our projects and centres are living in poverty; poverty levels remain unacceptably high with 22% of people in England living in poverty, 21% in Wales and Scotland, and 17% in Northern Ireland. Child poverty rates are even higher, with 30% of children living in poverty in England, 29% in Wales, 24% in Scotland and 23% in Northern Ireland.¹ This means that in England nearly one in every three children is living in poverty, and over one in five people living in poverty overall.

This Spring statement will not benefit these individuals, families and communities. Reeves’s planned welfare cuts are concerning. While we welcome the increase of Universal Credit payments by £14 a week by 2029-30, it is still not enough. For those receiving the health element of Universal Credit, this will be halved, and frozen for any new claimants. The government also announced over £5 billion cuts to social security payments for disabled people, which will leave many people without the means to pay for essentials, such as food.

Disabled people are already three times more likely to face hunger and three in four people using food banks are disabled or live with someone who is disabled. This reduction in Personal Independence Payments will make life harder for many disabled people.

We welcome the commitment to housing, particularly in areas where housing is least affordable. We are also pleased to see the £1 billion investment in helping people get back into work, and £400 million to support job centres, however this does not justify the huge welfare cuts. Making life harder for the poorest people by reducing social security and benefits will not help them into work.

We are concerned for the many of the people who we support at our centres and projects across the UK, and how much harder life could get for them. The people we support are not lazy or workshy, they are struggling and doing their best to survive and provide for their families. There needs to be greater and compassionate support to enable people to live well, and at the bare minimum, to be able to afford the essentials of life. Sadly, this is not reflected in this Spring Statement.