Key reaction to changes in the autumn budget likely to affect you

Labour's first budget in 14 years has sparked a lot of conversation. Many groups, like charities and trade unions, generally welcome the changes, but there’s also some worries.

Here’s what some of them have said about the changes likely to affect you.

Minimum wage increases

There was positive news for workers, which unions have welcomed.

The national living wage will rise from £11.44 to £12.21 starting April 2025.

This means full-time workers will earn about £23,874 a year, up from £22,368.

For 18 to 20-year-olds, the minimum wage will rise from £8.60 to £10, which is about £19,552 a year.

And apprentices’ pay will go up from £6.40 to £7.55 an hour.

This change will benefit over three million low-paid workers.

Trade union congress (TUC) general secretary Paul Nowak said:

“This increase will make a real difference to the lowest paid in this country at a time when rents, bills and mortgages are high.”

Concerns about disability benefits

Labour plans to change the work capability assessment. This could mean fewer people will qualify for universal credit if they have health issues. It’s estimated that over 420,000 people could lose out on vital funds.

Richard Kramer, from the charity Sense, said this is “deeply disturbing” for disabled people.

“They [the government] have chosen to continue the previous government’s harmful plans to reduce access to benefits. This risks undermining the wellbeing of disabled people, and the consequences could be devastating,” he said.

Tackling the housing crisis

Addressing the housing crisis, Reeves announced plans to build up to 5,000 new social and affordable homes. This will bring Labour’s total investment in housing to over £5bn by 2025/26.

While this is a step forward, Fiona Fletcher-Smith, chair of the G15 housing group, emphasised the need for long-term funding to build more homes.

She pointed out that “on average, one in 23 children in London are homeless, and about 56,000 Londoners are living in temporary housing.”

Mixed reactions from the political parties

The political parties are mixed in their opinions about the budget.

Steve Darling from the Liberal Democrats said there was some good news, like more funding for the NHS and higher minimum wages.

But he is concerned about  higher bus fares – with the cap rising from £2 to £3 in 2025 – and increasing national insurance for employers, which he says will “hit hard-working people and small businesses.”

The Scottish National Party (SNP) also welcomed the extra NHS funding. The party’s Westminster leader, Stephen Flynn, said this shows success  in pushing for more investment in public services.

Still, he criticised certain cuts, pointing out that lowering the winter fuel payment could leave around 900,000 Scottish pensioners up to £600 worse off this winter.

Following the budget, the Joseph Rowntree Foundation (JRF) released concerning analysis, claiming that living standards are likely to drop by the end of this parliament, back to levels seen during the cost-of-living crisis.

Their report shows everyone except for pensioners will be worse off, and families with children will feel the biggest impact. The JRF warns that “the average family will be £770 worse off in real terms by October 2029 compared with today (October 2024).”

What’s next?

The budget is seen as an important move to tackle key issues in Britain, offering positive changes for workers and more funding for essential services. But worries remain about how it will impact those who rely on benefits, people with disabilities and the urgent need for better housing options.