Contact responds to the government’s Spring Statement

2 mins read

Wednesday 26 March 2025

The Chancellor Rachel Reeves set out further cuts to benefits today, as part of the government’s Spring Statement. These cuts will affect some families with disabled children.

All Universal Credit claimaints will see a reduction in the amount of the standard allowance by the year 29/30.

If a parent has their own disability and receives the Limited Capability for Work (LCWRA) or health element, this will either be:

  • Frozen until 2029-30 if they are an existing claimant.
  • Reduced by almost half and then frozen until 2029-30 if they claim it after April 2026.

There hasn’t been any changes announced to the carer element itself, but those claimants will see their basic element reduced.

Anna Bird, Chief Executive of Contact, said:

“Today is another financial blow to families with disabled young people, still reeling from the savage disability benefit cuts announced last week. The reductions and freezes announced today will be felt most acutely by families who can’t seek paid work due to their caring responsibilities. We are talking about lone and disabled parents who are already at much greater risk of living in poverty.

“This contradicts the statement made in the government’s Green Paper Pathways to Work, published last week, that the basic rate of Universal Credit needs to rise in line with inflation to prevent hardship.”