Dream on…

Alistair Darling’s Pre-Budget Report contained some good news for disabled people, but it could have been so much better, says Ruth Patrick

Chancellor Alistair Darling stands up to deliver his pre-budget report. After the usual rhetoric about extraordinary times calling for extraordinary measures, he announces a massive spending programme to help boost the economy – targeted on making public places truly accessible for all disabled people. He also introduces the extension of winter fuel payments to all disabled people in receipt of benefits.

These measures, he argues, will help lift Britain out of recession while improving disabled people’s quality of life.

And then I woke up! Although Darling did not introduce any of my dreamt-of reforms, his pre-budget report (PBR) has been proclaimed as radical and redistributive, with help targeted at those who need it most.

The headline measures include a temporary reduction in VAT from 17.5 per cent to 15 per cent, an increase in personal tax allowances to help the lowest paid, and a £3 billion public spending programme designed to kickstart the economy. Equally important, Darling committed the government to a new 45 per cent tax band for all those earning over £150,000.

The PBR has been cautiously welcomed by many, who see in it Labour at last returning to its roots: taxing the rich to help the poor. But how will it affect disabled people in Britain today, who are disproportionately likely to be in poverty, and if in work, are often among the lowest paid? Undoubtedly, the increased personal tax allowance will help those on low wages, while the VAT cut will enable those disabled people living on tight bud­gets to stretch their money a little further. However, the poorest spend most of their money on food and energy bills, neither of which are affected by the VAT changes.

One piece of good news for all those claiming the main disability benefits is the £60 Christmas bonus, which will be paid out this month.

However, this one-off payment seems rather tokenistic, given that disability benefit rates remain unchanged. Another announcement which should be greeted with muted cheers is the extra £100m allocated for the Warm Front programme. This provides invaluable grants of up to £2,700 for vulnerable and low-income households – including disabled people on certain benefits – to improve insulation and energy efficiency in their homes.

Although there are measures to be welcomed, the government could have gone much further. Substantive increases in the main welfare benefits would have been a good place to start, while the spending power of the lowest paid could have been enhanced by cutting the basic income tax rate, even temporarily.

In essence, though, the PBR was about needing to take immediate action to ensure the current downturn does not endure too long. The coming months will show whether these tax cuts and spending increases can flip the economy from recession to recovery. Each of us should cross our fingers, as recessions are bad news for us all, disabled and non-disabled alike.

• Ruth Patrick is a disabled academic who specialises in welfare-to-work and disability benefits