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UK Youth’s response to the Budget

4 March 2021

News
Policy updates

Introduction

Yesterday, the Chancellor of the Exchequer presented his Budget which aims to support people and businesses through the pandemic, whilst also touching on longer term government aspirations and getting the public finances onto a sounder footing.

Our reaction to the Budget

We welcome the extension of measures directly addressing the ongoing economic crisis, which has disproportionately impacted young people. However, we are deeply disappointed that yesterday’s speech did not take the opportunity to speak directly to young people, to acknowledge the challenges they continue to battle and to commit to ensure that the youth services they depend on will be supported now and into the future.

There was no mention of the promised Youth Investment Fund; this is concerning as this investment is needed more than ever to deal with the financial strain the pandemic has placed on youth organisations who were already suffering from a decade of cuts.

Last week, we published a report on the impact of covid-19 on youth organisations which highlighted a stark picture for the youth sector, with nearly two thirds of the 1,759 organisations who took part saying they are at risk of closure in the next 12 months despite the majority of organisations reporting an increase in demand for their services. In January, we along with other charities called for an emergency support package to address the funding gaps that the sector as part of the #NeverMoreNeeded campaign. It is disappointing that the budget did not include new funding to deal with this ongoing need. It is also disappointing that charities were not included in the Help to Grow programme, which would have supported with investment in digital software and the upskilling of staff.

Young people deserve access to quality, well-resourced youth services that can provide them with a safe place and trusted relationships to allow them to emerge from this crisis in a positive way and help support their communities to recover.

Ndidi Okezie, UK Youth CEO, says, ‘Young people have been one of the hardest hit by the pandemic, a fact that the Chancellor has acknowledged before; with high levels of unemployment, an increase in poor mental health, and increased vulnerability to negative activities. Acknowledging the challenges young people face is important, but recognising how long this pandemic has lasted, it is now time for tangible actions of support to reach more young people. We cannot afford to let young people fall through the net because vital services were allowed to disappear.’

Our call to action!

The Chancellor repeated yesterday that he will “do whatever it takes” to support people through the pandemic, we continue to urge government to listen to young people and the youth sector and invest now in the diversity of services that are vital to ensure young people can recover and thrive.

In the immediate term, we call on the government to meet their commitment and release the £500 million investment they promised in their manifesto, this money is needed right now to respond to emergency needs of the sector.
For the longer term, we call on the government to ensure the sustainability of the youth sector to provide young people certainty around provision. We urge the government to work with the sector to develop an ambitious long term, well-funded strategy for supporting young people. The prosperity of the country relies on the health and well-being of our young people, so ensuring they have critical access to support is critical.

Notes of measures announced in the budget that impact young people

Welfare

The Government has confirmed that the temporary £20 per week increase to the Universal Credit standard allowance will be extended (but disappointingly only) for a further six months.

The Government will make a one-off payment of £500 to eligible Working Tax Credit claimants across the UK, to provide continued extra support over the next six months.

Supporting jobs

The Coronavirus Job Retention Scheme (CJRS) will be extended to September 2021. There will be no employer contributions beyond National Insurance contributions and pensions required in April, May and June. From July, the Government will introduce an employer contribution towards the cost of unworked hours of 10% in July, 20% in August and 20% in September.
The Government announced that the Self-Employment Income Support Scheme has been extended.
£126 million new funding for traineeships and apprentices this will include:

Traineeships for 16-24-year-olds in the 2021/2022 academic year
The Government will extend and increase the payments made to employers in England who hire new apprenticeships between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire, compared with £1,500 per new apprentice hire (or £2,000 for those aged 24 and under) under the previous scheme.

Increase in the national living wage from April 2021:

For those aged 23 and over, the new rate will be: £8.91
For those aged 21-22, the new rate will be: £8.36

For those aged 18-20, the new rate will be: £6.56
For those aged under 18, the new rate will be: £4.62
New Apprentice rate: £4.30

Housing

From June 2021, care leavers up to the age of 25 and those under the age of 25 who have spent at least three months in a homeless hostel will be exempt from the Shared Accommodation Rate in Universal Credit and Housing Benefit and will be able to claim the higher one-bedroom rate of Local Housing Allowance, helping more vulnerable people access suitable housing, brought forward from October 2023.

Arts and sports

The Government has also allocated an additional £300m to support theatres, museums, and other cultural organisations in England through the Culture Recovery Fund.
The Government will provide £90m for continued support for government-sponsored National Museums and cultural bodies in England.
The Government will provide £300m of continued support to major spectator sports in England

UK Youth’s response to the Budget

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