Jewish charities have warned that the Chancellor’s latest Budget does not go far enough to support vulnerable people, with concerns over mounting household debt, the cost of living and the financial pressures facing social care providers.
Responding to the Budget, Norwood and the Paperweight Trust welcomed some measures to ease pressure on households but warned that families and charities needed more substantial, long-term support to prevent people reaching crisis point.
Chancellor John Healey’s speech on Wednesday included a £100 Household Energy Payment for eligible households in England in council tax bands A to D from January 2027, an extension of the temporary VAT cut on electricity until July 2027, and plans to remove standing charges from domestic gas bills.
He also confirmed an increase in the National Living Wage and a move towards a Fair Pay Agreement for adult social care workers.
However, both charities said the measures did not adequately address the underlying problems affecting the people they support.
Naomi Dickson, chief executive of Norwood, which supports children, families and people with learning disabilities across London and the South East, said the Budget lacked the scale of action needed to address growing demand for care.
“While we welcome the government's commitment to delivering practical support that helps families manage the pressures of everyday life, this Budget falls short of the bold action needed to tackle the growing social care crisis,” she said.
Dickson welcomed the proposed changes to pay for care workers, describing them as “a vital, long-overdue recognition of our dedicated frontline workforce”.
But she warned that without additional funding for care providers, the changes could create further financial difficulties.
“Without an immediate, matching uplift in local authority commissioning rates, these rising statutory costs represent an unfunded mandate that places voluntary care providers like Norwood under unprecedented financial strain.”
She said the wider social care sector had again been left without the investment and long-term planning needed to meet increasing levels of need.
“For the thousands of children, young people, and adults who rely on specialist support, this represents another missed opportunity to strengthen services before needs escalate into crisis,” she continued.
“Early intervention is not a luxury. It is one of the most effective ways to improve outcomes for neurodivergent children and young people, people with learning disabilities, and their families, while reducing pressure on already overstretched public services.”
Dickson warned that without properly funded preventative services, families could be left struggling until their circumstances deteriorated.
“The government must now back its ambition for stronger communities with a fully funded plan for social care,” she said. “The government cannot claim to fix foundations of our public services while leaving the voluntary care sector to foot the bill for national wage policies.”
Meanwhile, the Paperweight Trust, which provides free, confidential advice and practical assistance to members of the Jewish community facing difficult or life-changing circumstances, said the Budget offered insufficient help to people already struggling with debt.
Its executive director, Barry Shaw, welcomed the proposed £100 energy payment and the planned removal of gas standing charges, but said these measures would not resolve the difficulties facing many of the charity’s clients.
“The Chancellor talks about giving families breathing space, and of course the £100 winter energy payment and proposed removal of gas standing charges are welcome,” he said.
“But for many of the people coming through our doors, these measures are simply not enough. They need a way out of financial crisis, not just temporary relief.”
Shaw cautioned rising living costs were combining with debt, housing pressures and difficulties navigating the welfare system to leave increasing numbers of households financially vulnerable.
“At Paperweight, we are increasingly supporting what we call the 'new vulnerables' – ordinary people who have worked hard, paid their bills, managed their finances responsibly and never imagined they would need to turn to a charity for help,” he said.
He added that these households were often experiencing a gradual deterioration in their finances, as rising costs eroded their ability to cope with unexpected expenses.
“Gradually, a household that was once managing perfectly well finds itself struggling and facing mounting debts, unpaid bills and overwhelming financial uncertainty.”
Paperweight opened more than 2,000 new cases last year and spent over 50,000 hours supporting clients. Demand continues to rise, with the charity sometimes opening more than 20 new cases in a single day.
Its work includes helping people navigate debt, welfare benefits, housing, employment, bereavement, illness and complex administrative problems.
Shaw said families needed a Budget that tackled the causes of financial hardship rather than offering limited short-term savings.
“Families facing mounting debt needed a bold and ambitious Budget to tackle the underlying causes of their difficulties,” he said. “Instead, they got measures that merely tinker around the edges of a much deeper problem.”
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