Last week the new Chancellor delivered the first budget under the new government. Headway - the brain injury association responded to the budget last week.
The statement notably lacked direct funding to support individuals living with acquired brain injury (ABI) and included an increase in employers' national insurance contributions. These changes could significantly impact local independent Headway charities, which are already facing financial pressures.
National Insurance increases
The Chancellor announced an increase in employers' national insurance contributions from 13.8% to 15% starting in April 2025 as well as changing the threshold at which national insurance becomes payable by employers. These changes could severely impact local independent Headway charities that are already facing financial pressures and rely on stable funding to deliver essential services to brain injury survivors.
Headway is writing to the Chancellor of the Exchequer with our concerns about the National Insurance rises. We have also signed the NCVO open letter calling for urgent action on the planned NI increases for the voluntary sector.
Extra NHS funding
The government’s Autumn Statement also revealed a substantial increase in NHS funding, with day-to-day spending set to rise by £22.6 billion. Additionally, there is a further £3.1 billion allocated for capital investments in NHS buildings and infrastructure. This funding boost aims to enable NHS England to deliver 40,000 extra appointments each week.
However, the lack of targeted support for brain injury care remains a significant oversight and Headway will continue to call for better financial support for community-based rehabilitation and reablement services for brain injury survivors.
Welfare changes
On a more positive note, the Chancellor announced an increase in the Carer's Allowance Weekly Earnings Limit, allowing working carers to be able to earn £196 per week and claim Carer’s Allowance. This change will enable carers to earn more from separate employment and income sources before losing their allowance, which could help alleviate some financial strain for families.
However, the Chancellor also indicated the new government will continue with the previous government’s plans to reform the Work Capability Assessment. This decides whether someone is eligible for Employment Support Allowance and Universal Credit. These reforms could lead to more individuals being deemed fit for work, which may result in cuts to benefits for those who cannot actively seek employment due to their conditions. This change could disproportionately affect brain injury survivors and others whose ability to work is hindered by illness or disability, leading to fears of unfair discrimination.
We are expecting further information and clarity over the coming months, and we will look for opportunities to shape and influence the policy including through our parliamentary champions.
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