Comprehensive Spending Review under the spotlight

Chancellor George Osborne has unveiled the biggest UK spending cuts since World War II, with welfare, councils and police budgets all being hit hard.

The Government’s vigorous Comprehensive Spending Review — which will save £83billion over four years — was unveiled on the day dubbed Axe Wednesday.

The Comprehensive Spending Review revealed that the poorest and most vulnerable 10 per cent of adults will be hit harder than any other income bracket

The Comprehensive Spending Review revealed that the poorest and most vulnerable 10 per cent of adults will be hit harder than any other income bracket except the wealthiest.

While the NHS and state education budgets have been protected, many of the changes will have a detrimental effect on housing supply and homelessness.

This dramatic bid is the Coalition’s attempt to cure the nation’s crippling £155bn deficit.

But commercial recycler and social welfare charity, Recycling Lives, is worried about the effects these cuts will have on the very people that need the government’s funding support the most.

The cuts will see:

• The Communities in Local Government will face massive cuts of 33 per cent over 4 years, with local authorities losing a quarter of their funding.

• All local authority grants will cease to be ring fenced, with the exception of funding for schools and health.

• The housing budget will face serious cuts of around 70 per cent, likely to significantly reduce the supply of social housing. Only 150,000 new affordable homes will be built over the next 4 years with a budget of £4.5bn.

• New social housing tenants will be expected to pay far higher rents and will no longer have secure tenancies

• The welfare bill will be cut by £7bn per year

• Much of this will come from further cuts to housing benefit, with the amount that can be claimed by anyone under 35 reduced to the shared room rate (a much lower rate of housing benefit).

• However, the Homelessness Grant will be protected and the Supporting People budget will only face relatively small reductions; though there remains a risk that since the funding is no longer ring fenced, local authorities may divert funding away from the most vulnerable.

• A one-year £100 million transition fund will also be made available for third sector organisations in difficulty.

Businesses such as commercial recycler and social welfare charity, Recycling Lives, will become increasing important in the future. With a strong reliance on benefit cuts, those stuck in a homeless or workless cycle are going to need more help than ever to change their lives for the better.

Chairman and Founder of Recycling Lives, Steven Jackson

Recycling Lives Chairman and Founder Steven Jackson, explains how Recycling Lives is equipped to do this, he said: “Recycling Lives helps those who are facing an uncertain future to change their lives for the better; by offering the tools they need to succeed. Recycling Lives can offer accommodation, education, training, work experience, a job and a work ethic to those determined to break the workless cycle.

“Recycling Lives has integrity and sustainability at its heart and has proven that business can be a force for good while continuing to deliver a competitive service.

“The effects of these cuts will be significant but Recycling Lives is developing 50 new centres nationwide, so we can offer more people an opportunity to change their lives for the better.”

Read more on how Recycling Lives are tackling the worklessness cycle