The summer budget 2015 is a bit of a mixed bag for the Voluntary and Community Sector.
Most charities or other not-for-profit organisations with any staff will benefit with the National Insurance employment allowance for small firms to be increased by 50% to £3,000 from 2016. And George Osborne has also included some hand-outs to high-profile charities like the Children’s Air Ambulance, which will be good news for them.
But the £12 billion of welfare savings, albeit over a slightly longer period, is bound to have a significant impact on some of the vulnerable individuals and families most in need, with reductions in the income threshold for tax credits, limits to child tax credits, scrapping of housing benefit for 18-21s, and changes to the Employment and Support Allowance.
As Steve Clapperton from the Charities Aid Foundation, comments:
“Many voluntary organisations anticipate that demand for their work will increase over the coming years. With further pressure on the public finances and welfare spending, it will be important for government to work in collaboration with charities to use their expertise and make sure charities are not simply left to fill the austerity gap.”
What do you think of the budget? How will it effect Bromsgrove and Redditch?
For a summary of the key points of the budget try
- BBC – Budget 2015 key points: At-a-glance summary
- The Guardian – 25 key points at a glance
- The full speech
UPDATE
For more summaries and reaction you could also try
- NAVCA – Summer budget for a view from the voluntary and community sector
- Children and Young People Now – Charities hit out at £12bn welfare cuts for the view from some of the sector
- NCVO – A budget full of implications for the voluntary sector for analysis of the likely impact
