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News UK UK Politics Children ‘facing hungry Christmas’ after Kwarteng ‘prioritised bankers’ in mini-Budget, charities warn Kwasi Kwarteng and Liz Truss accused of ‘prioritising bankers’ bonuses’ over hardest-hit families
45% higher rate of income tax will be 'abolished', chancellor says Your support helps us to tell the story From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
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Your support makes all the difference. Read more Children are facing a “cold, hungry Christmas” after the chancellor’s economic plan “prioritised bankers’ bonuses” over the hardest-hit families, charities have warned.
Kwasi Kwarteng and prime minister Liz Truss have been accused of taking a “Robin Hood in reverse” approach after announcing a raft of tax cuts which bring benefits mainly to the most wealthy.
Addressing parliament on Friday morning, Mr Kwarteng announced the government would abolish the top rate of income tax for the highest earners, axe the cap on bankers’ bonuses, and add restrictions to the welfare system.
However, he did not announce any new targeted support for the poorest and most vulnerable families who are already bearing the brunt of the cost-of-living crisis.
Mark Russell, chief executive at The Children’s Society, said the country needed “far more direct support” for families who will still be struggling to heat their homes this winter.
“What is glaringly absent from today’s announcement is any targeted support for the hardest hit families,” he said.
“In the week we released our Good Childhood Report revealing the damaging decline in children’s wellbeing this is a shocking omission and we are now calling on the government to take swift follow up action for these children facing a cold, hungry Christmas.”
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Chancellor Kwasi Kwarteng (centre) and prime minister Liz Truss (left) have been accused of producing a ‘Robin Hood in reverse’ budget that helps the 'already wealthy’ (Parliament's Parliamentary Recording Unit (PRU)/AFP via Getty Images) Becca Lyon, head of child poverty at Save the Children, said almost four million children were at risk of going cold and hungry this winter. She described the government’s tax cuts as a “hammer blow” to low-income families.
“The chancellor has prioritised bankers’ bonuses over helping vulnerable children through the cost-of-living crisis, whose hard-working parents face impossible choices,” she said.
“Today’s announcements overwhelmingly benefit the country’s wealthiest households, meanwhile almost four million children risk going cold and hungry this winter.”
The Joseph Rowntree Foundation accused the government of “turning its back on millions who are on the lowest incomes”.
Rebecca McDonald, the chief economist at the anti-poverty charity, said the mini-Budget had “wilfully ignored” families struggling through the cost-of-living crisis and instead targeted its action at the richest.
The Child Poverty Action Group said the announcement was “more about bankers’ bonuses than helping hungry kids” who would be “forced to pay the price”.
Chief executive Alison Garnham said: “Today was a vital opportunity to provide reassurance and support to those who need it the most – but instead the government risks a collision with reality, and the four million kids currently living in poverty in the UK will be forced to pay the price.
“In the short term, benefits must rise with inflation as soon as possible, the benefit cap must be scrapped, and deductions paused to help families get through winter.
“And sooner rather than later government must grapple with the fact that our social security system is there for a reason – and investing in it is the best way to keep kids and their parents out of poverty.”
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The chancellor announced the government would abolish the top rate of income tax for the highest earners, axe the cap on bankers’ bonuses, and add restrictions to the welfare system (Maja Smiejkowska/Reuters) While business groups welcomed the chancellor’s statement, unions branded it “Robin Hood in reverse”.
TUC general secretary Frances O’Grady said work, not wealth, should be rewarded, adding: “At the first opportunity, Liz Truss is holding down wages and lining the pockets of big corporations and City bankers.
“The party of pay cuts strikes again. This Budget is Robin Hood in reverse.”
Unite general secretary Sharon Graham said the mini-Budget was “unashamedly a budget for the rich, big business and the City”.
“Billionaires and city bankers will once again be considering which tax haven they will stash their money in, whilst millions of ordinary families continue to struggle to make ends meet,” she said.
Unison general secretary Christina McAnea added: “The government has ditched levelling up for an all-out offensive to make the wealthiest even richer.
“In the middle of a huge cost-of-living crisis, this isn’t the time for economic experiments that are doomed to fail.”
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