Baroness Shaista Gohir, CEO of Muslim Women's Network UK

I congratulate Chancellor Rachel Reeves on delivering Labour's first Budget and also making history as the first woman ever to deliver the UK's budget. The budget offers hope with many positive announcements. However, I have some concerns including the lack of announcements in some areas such as on VAWG and hate crime.

Carer’s Allowance
I am pleased that the earning limit for carers has increased by £45 per week which means those who provide care for at least 35 hours a week to the disabled, sick and elderly can now earn the equivalent of 16 hours at the National Living Wage (i.e. £195.36). This will particularly help Muslim women who are amongst the highest percentage of unpaid carers and have the highest unemployment rates.

National Living wage
I welcome the positive step to increase the National Living Wage from £11.44 to £12.21 because women (and particularly those from minoritised communities) are more likely to be in lower paid work.

Saving Scheme for Low Earners
The Help to Save scheme has been extended and widened. The scheme offers lower earners a savings account where they can save a maximum of £50 a month for 4 years and receive a 50% government boost at the end of year 2 and year 4. This means that anyone saving the maximum amount each month and therefore saving £2400 over four years, will receive a £1200 top up. The scheme was due to end in April 2025 but has been extended by 2 years until April 2027. Eligibility for the scheme will widen from April 2025. It will be open to all working Universal Credit claimants earning at least £1 a month. This scheme could particularly help minority ethnic groups who are on average more likely to be in income poverty compared to the than white population, the difference being greatest for couples with children and least for lone parents.

NHS Appointments
Investment in the NHS was positive news such as funding to reduce waiting times by supporting the NHS to deliver an extra 40,000 elective appointments a week (i.e. those planned in advance). However, it remains to be seen whether this will reduce racial inequalities in healthcare provision - individuals from minoritised communities are more likely to experience a delay or cancellation of hospital treatment compared to the white population. Minority ethnic individuals from low income households face even longer waiting times for care.

Early Education
The Budget included investment of an extra £1.8billion into the early years. The money is expected to mean 300 new or expanded nurseries open by September 2025. This investment is important because early education has a positive impact on future development including helping to overcome disadvantage and poverty. I hope these places are also used to start addressing the disparities in early education experienced by Black, Asian and minority ethnic families. The largest number of nursery closures in recent years have in the poorest areas particularly hitting areas with large ethnic minority populations. They are also less likely to be accessing good quality childcare.

Employer’s Tax
The Chancellor announced a higher than expected employer national insurance contributions. This will rise from 13.8% to 15%, along with the lowered threshold from £9,100 to £5,000. This will result on a higher tax bill for employers. While the Chancellor’s decision to raise the Employment Allowance from £5,000 to £10,000 provides some relief, small charities / community organisations, who often struggle for funding, will now face significantly higher wage bills. The women’s charity sector already has less access to grants and the situation is far worse for the minoritised women’s sector. The forthcoming pay increases such as the rise in the national living wage and inflation-driven pay adjustments (which is welcome), the wage bill will be even higher with the new tax increase. I am concerned this will result in scaling back of services, staff being made redundant and even many organisations closing. I urge the Chancellor to provide more support for the charity sector in her next budget.

VAWG
Although the Government has pledged to halve violence against women and girls, there was no funding announcement for specialist services. More dedicated and accessible funding is urgently needed, with criteria that do not create barriers for minoritised women's groups, as was the case under the previous government.

Hate Crime
Given the riots over the summer and rise in hate crime particularly towards Muslims, I am disappointed not to see any announcements of funding to tackle hate crime / Islamophobia.

Note: Some of the content has been taken from the media statement published on 31 Oct 2024 by the Muslim Women’s Network UK