The UK Autumn Budget 2024 has introduced several significant changes and allocations to improve healthcare, disability benefits and support for those with special needs. The budget strongly emphasises addressing NHS backlogs, expanding mental health services, reforming disability benefits and enhancing provisions for carers and those with special educational needs.
Healthcare funding and NHS reforms
A major highlight of the 2024 Autumn Budget is the substantial increase in funding for the NHS. The government has allocated an additional £22.6 billion to the Department of Health and Social Care by 2025-26. This boost is designed to improve NHS service delivery, enabling the healthcare system to handle an additional 40,000 elective appointments weekly and reducing wait times for patients needing consultant-led treatments.
In addition to operating funds, £3.1 billion in capital investments will support new diagnostic facilities and critical repairs within NHS infrastructure. This capital will add capacity for 30,000 procedures and further reduce the waiting list backlog for critical treatments.
Mental health services will also receive targeted support with an additional £26 million earmarked for crisis centres. These centres will help alleviate pressures on A&E departments by providing immediate mental health support, offering a comprehensive approach that addresses underlying issues and facilitates return-to-work support for affected individuals.
Disability benefits, social care and carers allowance
In a move to improve the experience and financial support for disabled individuals, the government has outlined reforms to the benefits system, particularly through the acceleration of the migration from the Employment and Support Allowance (ESA) to Universal Credit (UC). This transition, which started in September 2024—four years earlier than initially planned—aims to streamline support and increase financial assistance for many individuals. Approximately half of current ESA claimants are expected to receive higher benefits under UC, while others will receive transitional protection to avoid any sudden loss in benefits.
Personal Independence Payment (PIP) is included under the scope of the welfare cap, but no direct reforms or updates specific to PIP are mentioned in the budget.
For those receiving the Severe Disability Premium (SDP), the budget introduces adjustments to transitional protections, particularly benefiting individuals moving from supported or temporary accommodations to rented housing. These protections will help ensure continuity of support and financial stability during significant life changes.
The budget will also allocate at least £600 million in new grant funding to support social care. This is part of an approximate 3.2% increase in core local government spending aimed at supporting essential local authority services.
An additional £86 million has been committed to the Disabled Facilities Grant to fund around 7,800 home adaptations. This initiative is intended to help individuals with social care needs remain in their homes, reduce hospital admissions, and promote independence.
Furthermore, carers will receive improved support under the new budget. The weekly earnings limit for Carer’s Allowance will rise in April 2025 to £195, allowing unpaid carers to earn more without affecting their benefits providing increased flexibility and financial security.
Employment and special needs support
Through the “Get Britain Working” White Paper, the government is investing £240 million to trial approaches to help people return to the workforce. This initiative will explore methods to tackle inactivity due to ill health, support young people who are “not in education, employment, or training” (NEET), and provide career development. It will establish eight regional “trailblazer” areas across England and Wales, merging health, employment, and skills services to support those inactive due to health issues, and three areas with targeted NHS support through Health and Growth Accelerators.
Jon Sparkes OBE, Chief Executive of learning disability charity Mencap, responded to this pledge, saying:
“This investment provides a huge opportunity to drive economic growth and transform lives by supporting people with a learning disability into work. Mencap research found that 86 per cent of people with a learning disability want a job, but the support simply isn’t there for them.
“We will work with the Government to help them tackle the barriers holding disabled people back from employment, but the devil will be in the details and any new programme must be person-centred and recognise and reflect the varying needs of people with a learning disability.
“There must also be recognition that for some disabled people, work is simply not an option. People with a learning disability need a social security system that is fit for purpose and doesn’t leave people relying on food banks and struggling to heat their homes.”
The budget will also introduce the “Connect to Work” initiative, which will invest £115 million in 2025-26 to match individuals with disabilities or health conditions to suitable employment opportunities. This program, which will be delivered through local authorities, is expected to support nearly 100,000 people per year beginning in 2026-27, with a focus on individualised support that prioritises flexibility and ongoing assistance.
For young people with special educational needs and disabilities (SEND), the budget allocates an additional £1 billion, increasing the SEND and Alternative Provision budget by 6% in real terms. This funding boost is part of a reform effort to improve outcomes within the SEND system and make it more sustainable for the long term.
Moreover, the government will cover VAT charges on fees for students with special educational needs placed in private schools by local authorities, alleviating financial burdens and ensuring continued access to critical services.
Future prospects from the Autumn Budget
In summary, the Autumn Budget 2024 delivers comprehensive reforms and targeted investments to improve the lives of those with disabilities, health conditions, and special educational needs. By investing in healthcare infrastructure, modernising disability benefits, and expanding employment and educational support, the government aims to foster a more inclusive and supportive environment for all citizens, setting a foundation for sustainable long-term growth and quality of life improvements across the UK.
Reacting to the announcements, Disability Rights UK said: “Today’s budget is yet another failure. A failure to make real change. A failure to recognise that Disabled people and those with long-term health conditions should be treated as valued members of society whose lives are equal to all other citizens and who should not be viewed as burdens or cheats whose needs don’t deserve to be met. The chancellor is chalking up gains from cutting the Social Security budget and giving us nothing on the social care system and less than a quarter of what we need to fill the SEND funding gap.
“Despite the minimal uplift in spending to fund our crumbling public services, the budget doesn’t give Disabled people the confidence that the services we rely on every day will tangibly get better. At the end of the day, the biggest announcement was one our community had been expecting: more Disabled and working-class people seeing their benefits cut whilst there will be no real difference in our local services.”
Other budget key points
Chancellor Rachel Reeves has delivered Labour’s first Budget since 2010, after the party’s return to power in July’s general election.
She announced tax rises worth £40bn to fund the NHS and other public services.
Other key points include:
- Personal Taxes – Income tax and NI rates remain the same, with thresholds rising by inflation after 2028. Capital gains tax on shares rises to 18% (basic) and 24% (higher), inheritance tax thresholds freeze until 2030, and farmland inheritance exemptions reduce from 2026.
- Business Taxes – Company NI rises to 15% on salaries above £5,000, with smaller companies’ Employment Allowance increasing to £10,500. Private equity profit tax rises to 32%. Corporation tax stays at 25% on profits over £250,000.
- Wages, Benefits, and Pensions – Minimum wage for over-21s rises to £12.21 per hour. State pensions increase by 4.1%, and carers’ allowance earnings threshold rises to £195.
- New Rules for Public Spending – The government aims to cover all day-to-day spending through revenue, using borrowing only for major investments. This approach is designed to reduce debt over time.
- Investment in Growth – Over £100 billion will go towards improving transport, housing, and research over the next five years to boost the economy.
- Help with Cost of Living – The budget raises the National Living Wage and extends the Household Support Fund by £1 billion to help low-income households. The State Pension Triple Lock also stays in place to protect pensioners.
- Support for Small Businesses – Relief on business rates continues for retail, hospitality, and leisure businesses, and corporation tax is capped at 25% to stay competitive.
- Green Initiatives – Higher taxes on oil and gas profits will help fund renewable energy projects. The budget also includes incentives for electric vehicles and more investment in green infrastructure.
- Efficiency and Anti-Fraud Measures – Government departments must save 2% of their budgets, and a Covid Corruption Commissioner will help recover funds lost to fraud during the pandemic.
- Local Investments – New funding includes £1.4 billion for rebuilding schools, £1.2 billion for additional prison places, and £1.6 billion for local road maintenance.
You can read the full 2024 UK Autumn Budget on the UK government website.
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