In Magnifica Humanitas, Pope Leo set out his vision for an “economy that values dignity”, saying that economic freedom “must always be measured against the common good and the dignity of every person”. It is through this lens that we analyse last week’s Autumn Budget announcements by Chancellor John Healey. While Caritas Social Action Network (CSAN) warmly welcomes the Government’s commitment to ‘the working people of Britain’, we don’t think this budget went far enough in asking the bigger questions about our political and economic systems, and to address the root causes.
Last year’s Autumn Budget, scrapping the two-child benefit cap, was highly anticipated and had long been campaigned for by many working to end child poverty, including CSAN. In comparison, this Autumn Budget lacked a similar headline-grabbing policy, instead seeking to reinforce that Labour is taking the fiscal rules “seriously”, and continuing to tackle the cost of living. The “everyday fixes” should be celebrated for their positive impacts – the £100 promised to households in Council Tax bands A to D to help with energy payments, extending the cut to VAT on electricity, gas standing charges and fuel duty. We also recognise the attempt to improve the lives of young people in the UK – by raising the Minimum and Living wage by 3.9%, committing a White Paper following the youth employment review, and confirming £100 million for a local apprenticeship service. However, these fixes ultimately fail to address the root causes of social injustice, which prevent families and young people from their full human flourishing.
This was evident particularly in the reforms to housing and social security, which didn’t go far enough in prioritising those experiencing poverty and thus fails to address the cost of living crisis. For instance, while the Chancellor acknowledged that ‘the last Conservative government left a broken system’ on social security, there was no commitment to increasing Universal Credit, which currently does not provide enough to pay for life’s essentials. We all need a strong social security system to support usand our neighboursin case of difficult or unexpected circumstances, such as when somebody gets sick or made redundant.
Families are the basis of flourishing communities, but too many people are living in or forced out of unaffordable housing because they have to choose between food, fuel or heating. This budget followed through on financing Prime Minister Andy Burnham’s pledge to end homelessness by Christmas – with £430 million for every winter, an extra £1 billion for the Social and Affordable Homes Programme – but other measures could have laid the groundwork for long-term systems change. Introducing a rent stabilisation mechanism and uprating the Local Housing Allowance would have more effectively eased the cost of living crisis, given that 23% of UK renters spent over 40% of their income on rent in 2023.[1] We cannot end homelessness without long-term strategies, questioning who our housing system is failing and acting preventatively. And we cannot work for dignified housing for some and not for others – the government’s plans to house those seeking refuge in the UK in large and remote sites such as barracks is gravely concerning. All families and individuals need secure housing in communities in order to rebuild their lives.
The Social Doctrine of the Catholic Church highlights the importance of distributing resources for the common good, being “shared fairly by all mankind” (#360) and that “goods are meant for everyone” (#372). To support the flourishing of people above profit, we appreciate the decision to increase the bank surcharge by 3% for the benefit of UK families. But we also believe that those with significant wealth have the capacity to contribute more to the services that everyone depends on, such as libraries, schools, and hospitals. Faith leaders recently called for an annual wealth tax which would raise over £20 billion per year, enabling our leaders to truly show their solidarity with those who are marginalised.
As Pope Leo highlighted in Dilexi Te, “We need to be increasingly committed to resolving the structural causes of poverty”. Andy Burnham’s government promised to challenge the system in its commitment to the ‘working person’, but this budget, while positive in many respects, falls short of that ambition.
CSAN continues to work towards the Catholic mission of tackling the causes of poverty, promoting justice and restoring dignity.
[1] As recommended in research by IPPR, JRF and UCL. Cost of living, economic growth and stability: How to make this autumn budget a success – Institute for Public Policy Research (7 October 2026); How rent controls reduce the cost of Local Housing Allowance uprating – Joseph Rowntree Foundation (7 October 2026); Taking back control of rents: The impact of rent regulation on affordability, public spending and landlord profits – UCL Institute for Innovation and Public Purpose report (July 2026).
