We’ve explored all of this in more depth below, detailing everything you need to know about how the autumn budget could affect grant applicants.

Benefits will increase by 1.7% in April 2025

The chancellor confirmed that benefits will increase by just 1.7% in April 2025, which equates to “just a few pounds” extra each month for most claimants.

This is because 1.7% were The rate of inflation in Septemberwhich was unusually low inflation and the lowest level in more than three and a half years.

In comparison, the state pension will increase by 4.1% under the triple lock rules.

Charities have repeatedly called on the government to increase benefits so people can afford the basics they need to live – universal credit currently falls short by around £120 every month.

Another crackdown on ‘benefits fraud’ with ‘direct access to bank accounts’ to recover debts

Reeves reiterated that the government will crackdown on fraud in the welfare system to prevent “illegal activity”, including a mention of having “direct access to bank accounts to collect debts”.

This is likely to cause significant fear among campaigners, who have consistently warned of Department for Work and Pensions (DWP) plans to ‘spy’ on bank accounts.

Keir Starmer previously announced one Fraud, error and debt accountingreflecting proposals by the previous government to allow the DWP monitor people’s economic activity.

Reforms to the assessment of work ability to reduce the calculation of disability benefits

Rachel Reeves confirmed that Labor will continue with the previous government’s plan to reform assessment of work abilitywhich assess how much universal credit a person can get if they have a health condition, so fewer people are eligible for support.

It is estimated that this will reduce the number of people who will end up on the “highest level of disability benefits” by more than 420,000 people, amounting to almost £5,000 lost per year per person.

These plans will mostly affect new claimants, but campaigners have said they will apply to existing claimants when their circumstances change, for example if they move house.

Richard Kramer, chief executive of Sense, said: “The government’s decision today is deeply worrying for disabled people. They have chosen to continue the previous government’s harmful plans to reduce access to benefits. This risks undermining disabled people’s wellbeing, and the consequences could be devastating.

“Households with disabilities are living in crisis, their current welfare benefits barely cover the essentials and rising food and energy costs have driven many into debt and despair. But instead of choosing to give disabled people proper financial support and start changing lives, the government has stepped in in the dangerous narrative that the disabled should be forced to work.”

People with long-term health conditions must be pushed out into work

The Chancellor has unveiled a £240m ‘Get Britain Working’ package which includes work, skills and health support for disabled people and those facing long-term illness.

Work and Pensions Secretary Liz Kendall is expected to unveil her ‘Get Britain Working’ white paper, which will detail reforms to welfare and employment support, shortly.

The earnings limit for care allowance has increased

The income limit for Carer’s Allowance will rise to £10,000 a year, the Chancellor has announced. That equates to around £180 each week after tax, up from £151 each week.

It means tens of thousands more people will be eligible for Carers Allowance, which provides financial support to unpaid carers.

But charities said the social care system needs a significant funding boost for unpaid carers to see a real change in their circumstances, as Major problem reported before the budget.

The Health Foundation estimates there is at least an £8.4bn annual funding gap for social care for adults, meaning people are missing out on care and the UK is more reliant on unpaid carers.

Deductions for universal credit debts will be limited

In positive news, Reeves has announced changes to Universal Credit which will limit the level of deductions due to debt.

The DWP takes money back from around half of Universal Credit claimants to repay debts and correct mistakes, according to analysis from New economic foundation.

The Big Issue has reported on the effects of universal credit deductionswhich is said to cause “poverty, evictions and mental and physical health problems”.

This means that the monthly deduction level for the standard deduction for Universal Credit will be capped at 15% instead of the current 25%.

This will save more than one million households on Universal Credit an estimated £420 a year.

Campaigners would like the government to go further, such as introducing a minimum income floor below which Universal Credit cannot fall, so that people can afford the essentials they need to live.

Helen Barnard, head of policy at Trussell, said “the decision to ease the burden of debt repayments for people receiving Universal Credit is a much-needed step towards better protection against hunger and hardship in our social security system”.

The two-child limit for benefits remains

There were calls for the two-child limit on benefits to be scrapped in the autumn budget, but Rachel Reeves has continued to resist this.

Labor ministers have been clear they will not scrap the two-child limit on benefits in the short term, and it was not mentioned in the government’s latest strategy for child poverty review.

It is estimated that hundreds of thousands of children could be lifted out of poverty if the government dropped the cap, reducing the cost of child poverty by more than £3bn.

The government can still scrap the two-child limit in the future, but it was not done in the autumn budget. Its first strategy on child poverty will be published in spring 2025.

Joseph Howes, CEO of Buttle UK and Chair of the End Child Poverty Coalition said: “Today’s Budget announcement will only go so far to lift children and their families out of poverty in the UK.

“The government could have chosen to scrap the two-child limit on child benefit payments – a policy that is driving families into poverty. This opportunity for the government to take swift and decisive action has been missed. More children will be dragged into poverty as a result, every day.”

No U-turn on the winter fuel payment reductions

One of the most controversial decisions the Labor government has made so far is means test the winter fuel paymentmeaning millions of pensioners will not receive the payment of up to £300 to help with their heating bills this winter.

There were calls for the chancellor to reverse his decision over winter fuel payments, but Reeves has repeatedly defended the cuts and the autumn budget was no different.

The chancellor pledged to keep the state pension triple lock, which means it will rise by 4.1% in 2025/2026, meaning pensioners will be up an extra £470 next year. The pension credit standard’s minimum guarantee will also increase.

Do you have a story to tell or opinions on this? Get in touch and tell us more. The Big Issue exists to give homeless and marginalized people the opportunity to earn an income. To support our work, buy a copy of the magazine or download the app from App Store or Google Play.

The Big Issue calls for an end to extreme poverty. Are you coming ask your MP join us?