Yesterday, the Chancellor announced a range of measures that will bring great relief to so many families in my constituency who have faced rising pressures on their finances. I am proud to support this Labour budget that will rebuild public services, reduce the cost-of-living, and benefit thousands of my constituents living in poverty.
I strongly welcome the removal of the two-child benefit cap. This policy, introduced by the Conservatives, pushed thousands of families into poverty. This includes so many in my constituency, with 51% of children in Manchester Rusholme living in poverty – a grim reality. Removing the cap from April 2026 will benefit an estimated 5,110 children in my constituency, and will reduce child poverty nationally by 450,000 by the end of the decade. This Labour Government is determined to eliminate child poverty, and I am glad that yesterday’s announcements will make monumental progress in doing so.
Several other policies announced today will make a substantial difference to my constituents’ everyday lives. By removing some levies on energy bills, the average British household will save £150 from April 2026. For households on the lowest incomes, families could save up to £300.
This Labour Government is also freezing rail fares for the first time in 30 years. NHS prescription charges will also freeze, saving patients around £12 million next year. The minimum wage will rise to meet inflation, with the rate for 18-20 year-olds increasing from £10 to £10.85 and the national living wage rising by fifty pence to £12.71. Simple changes like this, funded by fairer taxes on those with the broadest shoulders, will be a great help in tackling the cost-of-living crisis.
This budget will also support our local businesses, introducing permanently lower tax rates for eligible retail, hospitality and leisure properties. Businesses in my constituency have faced enormous pressures in recent years, and it is heartbreaking to have seen so many forced to close their doors. Roughly 7,630 retail, hospitality and leisure properties in Manchester will benefit from these new lower rates; providing a much-needed boost to our beloved high streets.
The NHS will receive an extra £15 billion per year by 2028-29, allowing us to deliver on our promise to cut waiting times. 250 new Neighbourhood Health Centres will bring GPs, nurses, dentists and pharmacists together under one roof to best meet the needs of the community, starting in the most deprived areas. This will improve access to GPs and tackle the unnecessary complications in the health service, problems that are encountered all too often by my constituents.
I also welcome the announcement of the Youth Guarantee, a great opportunity for young people. This guarantee will mean that every eligible young person who has been on Universal Credit for 18 months without earning or learning will be offered a paid work placement. They will also receive the necessary mental health, housing support and skills development to support them into the workplace.
Funded by fairer taxation, rather than irresponsible borrowing, this budget will make a real difference to my constituents. This Government was elected to renew our country after years of decline, and this is a huge step in the right direction.
If you would like more information on what the budget will mean for you, Money Helper have prepared a free and impartial guide: https://www.moneyhelper.org.uk/en/blog/everyday-money/what-the-autumn-budget-means-for-you