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Elizabeth Finn Care responds to the Budget 2009
Immediate Release: 22 April 2009
  
· Media spokespeople available for comment immediately.
 
· Nationwide case studies available to draw upon.
 
· Director, Malcolm Tyndall available for interview on how the Chancellor’s announcements will impact on the 13 million men, women and children in the UK who are living at or near the poverty line.
 
Maintaining rate of VAT
 
Elizabeth Finn Care was completely opposed to any premature increase in the VAT rate.
 
Any increase would have been yet another blow to those living below the poverty line who are surviving on very tight incomes. As the Chancellor himself knows, that 2.5% makes a real difference to people in poverty, offering a valuable lifeline to help the poorest survive through these tough economic times.
 
Having allowed for this cut, people in poverty would then have to make some very hard decisions as to what they could possibly cut back on. We can only hope that, having kept his promise to keep VAT at 15% until 2009, Mr Darling will not raise it even further than 17.5% next year.
 
- Malcolm Tyndall, Director, Elizabeth Finn Care
 
£100 million for new energy efficient Local Authority housing
 
Elizabeth Finn Care very much welcomes £100 million for Local Authorities to build new energy efficient housing. Whilst of course, environmentally, this makes sense, it will also help some of the UK’s poorest to reduce their heating bills. As an anti-poverty charity, nearly 40% of people come to us unable to heat their homes, with 32% regularly missing meals. Anything that helps end the dilemma over whether to ‘heat or eat’ is most certainly a step in the right direction.
 
There is still more that needs to be done, however. For example, disabled people living in poverty are often housebound due to the nature of their condition and unlike the elderly, do not receive any automatic heating allowance from the Government. Where is their help with reducing heating costs? Whilst this measure is a positive one, the Chancellor is still leaving thousands of vulnerable people out in the cold.
 
- Malcolm Tyndall, Director, Elizabeth Finn Care
 
Case study: the Lomax Family – 30s – Liverpool:
 
Mr & Mrs Lomax were forced to give up work due to their daughter’s severe disabilities and managed, with their two other children, on state benefits until last year, when they were given a helping hand by Elizabeth Finn Care. However, the family’s constant worry, and the issue which has led them into debt, is keeping their home warm enough for their daughter. Mr Lomax says: ‘Perhaps a home improvement such as loft insulation would help us to heat our home more efficiently and save vital cash. However, existing on state benefits and a charity grant as we do, it’s impossible for us to afford such a large outlay in one go. If we received some assistance, it would be welcomed with open arms.’
 
Fuel duty increase
 
This increase in duty on fuel will hit the poorest and most vulnerable in society who rely on their cars. Disabled people who need adapted vehicles and rely on road links; those who live in rural areas without sufficient public transport links; carers who need to transport the elderly and disabled around.
 
In levying such a widespread tax, The Chancellor is showing his lack of understanding, empathy and compassion for the poorest, most vulnerable and isolated in society.
 
Over half (55%) of our beneficiaries cannot afford to visit family and friends. This extra levy will force more into loneliness and isolation.
 
- Malcolm Tyndall, Director, Elizabeth Finn Care
 
Case study available – Female – 60s – Wales:
 
A former nurse who contracted Chronic Fatigue Syndrome (ME), Lynne held down two jobs before being made redundant from both in quick succession. She also has a heart condition and is waiting for a knee replacement. Lynne lives in a rural area, so relies on car sharing to get to her local supermarket and help others in the local community. At the moment, she faces a 40 mile round trip to save up to 10p per litre of petrol This extra tax will compromise her situation even further.
 
Winter Fuel Allowance
 
Mr Darling’s pledge to maintain the Winter Fuel Allowance at the higher level of £250 for the over 60s and £400 for over 80s for another year is wholly welcomed and supported by Elizabeth Finn Care. 34% of our beneficiaries are 70+. The stark reality is that 37% of our total beneficiaries admit they cannot afford to heat their homes.
 
Whilst we welcome this move, we would be very keen to see the Government clearly set out their plans for the Winter Fuel Allowance in the long term.
 
- Malcolm Tyndall, Director, Elizabeth Finn Care
 
Child Trust Funds
 
As a member of the End Child Poverty coalition, Elizabeth Finn Care wholly supports any measure to help vulnerable children in society and their families.
 
The stark reality is that many people with disabled children are forced to give up work to care for their children and rely on benefits, thus creating a cycle of disability and poverty. We help several families who are in this situation.
 
The Chancellor’s allowance of £100 for each disabled child and £200 for each severely disabled child is welcomed with open arms. However, if the Chancellor believes that will help to End Child Poverty, he has a very long way to go!
 
- Malcolm Tyndall, Director, Elizabeth Finn Care
 
Case study: the Lomax Family – 30s – Liverpool (see above)
 
No help for charities
 
Labour governments since 1997 have consistently recognised the vital role of the NFP sector in UK society, and given that charities have been placed under such tremendous pressure due to this recession, now was never the time to fall back on previous levels of commitment. Unfortunately, that seems to be precisely what has happened. Whilst it was hoped that the charity sector would see an extension in Gift Aid and the scope for claiming tax relief to ensure it conforms more with the tax system, this was absent from today’s budget. 
 
As a grant-giving, anti-poverty charity, we have felt the pinch even more than most, with a 400% rise in applications to us over two months of last year for financial assistance. If the government starts to ignore charities on budget day only to introduce measures such as that recently relating to VAT on agency staff (on which many charities rely so heavily) then their reputation for being a government that cares about the charity sector, will disintegrate very quickly.
 
- Malcolm Tyndall, Director, Elizabeth Finn Care  
 
Note to Eds:
Previous concessionary arrangements in respect of supplies of temporary workers by employment businesses were withdrawn with effect from 1 April 2009. Prior to this, such businesses were allowed to exclude the wages element from the supplies they made, and to account for VAT solely on their margin. The charitable sector was amongst those hit hardest by this change. 
 
Pensioner Savings
 
As Mr Darling himself pointed out, increasing the capital disregard on Pension Credit from £6,000 to £10,000 will help the modest-income pensioners, with limited savings. These are the type of people we see so often at Elizabeth Finn Care – older people who have retired or had to give up work prematurely who can so easily slip into poverty.
 
We greatly welcome the fact that half a million pensioners on modest incomes will gain by an average of £4 per week. However, the Chancellor must remember that this realistically only represents a saving of £208 per year.
 
- Malcolm Tyndall, Director, Elizabeth Finn Care
 
Note to Eds:
Four out of 10 savings accounts are held by those over the age of 55, with many elderly people relying on a modest income from their investments to top up their pensions. 
 
£1.7bn additional resources for Job Centre network
 
Elizabeth Finn Care supports in principle the Government’s determination to protect 500,000 jobs, not least with a £1.7 billion investment in the Job Centre network. However, we will reserve our overall judgement on this until we have seen the Red Book; only then can we be assured that this is indeed additional money, as opposed to funds diverted from other programmes that help people to keep themselves above the poverty line through these difficult times. 
 
ENDS
 
Elizabeth Finn Care is one of the UK's leading direct grant-giving charities, dedicated specifically to helping people in poverty. In the past five years, Elizabeth Finn Care has given £13 million in direct grants to beneficiaries from over 120 occupations and professions

Elizabeth Finn Care provides tailor-made grants to meet the individual needs of its beneficiaries. Our financial support can vary from one-off payments for mobility aids and home repairs to regular allowances designed to meet daily needs and back-to-work training. 

There are currently over four million people in the UK and Ireland who qualify for assistance from Elizabeth Finn Care, irrespective of age, gender or religion. Over two thirds of the people we help today are of working age.