Debt advisor says budget did not go far enough

Dan Bebbington offers financial advice to housing association tenants

A debt specialist has said the government's Budget did not go far enough to help struggling households.

The chancellor announced a 2p cut in National Insurance, an increase in the threshold for child benefits payments and an extension to a government fund to help people with cost of living pressures, among other measures.

Dan Bebbington from the Wrekin Housing Group in Shropshire said the National Insurance move would not help those on the lowest incomes.

He said the government would have helped more people if it had raised the income tax thresholds.

Jeremy Hunt, the chancellor, said in his Budget speech the National Insurance cut, to begin next month, is worth £450 a year for the average worker.

"Sadly those on the lowest incomes won't see any uplift in their take-home pay," Mr Bebbington said.

"Pensioners, who don't pay national insurance, will also see no benefit as a result of this policy change."

He welcomed some measures, such as the scrapping of the £90 fee to obtain a Debt Relief Order.

But he added: "This budget could have been a real opportunity for the government to extend a helping hand to people who are struggling the most."

Helen Morgan said most people would not notice the difference following the budget

Helen Morgan, the Liberal Democrat MP for North Shropshire said: "I think most people just feel as if they've had the wool pulled over their eyes really."

The government will collect 37.1p of every pound generated in the economy in 2028/29, according to today's forecasts from the government's spending watchdog, the OBR.

That will be the highest level in nearly 80 years.

Ms Morgan said: "We've seen a National Insurance cut, but actually people's taxes have gone up by a huge amount."

She welcomed the spending to improve NHS IT systems, but said it had needed doing "for a very, very long time".

Shaun Davies, the Labour leader of Telford and Wrekin Council said the National Insurance cut would "provide relief to some".

But he said: "The reality is that the continued squeeze on local government services will have a much bigger impact on people’s lives."

The Conservative Ludlow MP, Philip Dunne, described the budget as "responsible" and said it was "good news for south Shropshire.