The NUS UK president has called the Spring Statement a ‘disgrace’ for students and a ‘nail in the coffin’ following the Chancellor’s announcement today.
Today, Wednesday March 23, Rishi Sunak announced his Spring Statement to the House of Commons during which he revealed alterations for various taxes such as fuel duty and National Insurance.
Key Points of the Spring Statement:
Fuel duty cut
One of the major announcements made by Sunak was that he would be cutting fuel duty by 5p per litre from today following huge petrol price increases over the past three weeks.
Household support fund
The Household support fund will be doubled to £1bn with £500m of funding and local authorities will receive this money from April.
National Insurance contributions threshold raised by £3,000
The Chancellor announced from July, people will be able to earn £12,570 a year without paying any income tax or National Insurance.
Employment Allowance Increase
Employment Allowance for business will increase from £5,000 from next month.
Income Tax Cut
The basic rate of income tax will also be cut from 20p to 19p in the pound before end of current parliament in 2024.
0% VAT for green initiatives
The government will scrap VAT on energy efficiency measures such as solar panels, heat pumps and insulation installed for five years.
No Help For Students
The NUS UK president, Larissa Kennedy, has hit out against Sunak’s statement saying it was ‘steeped in calculated cruelness’ as it didn’t address the issues facing students.
She said: ‘The Chancellor’s Spring Statement is a disgrace for students, young people and graduates. This was a moment where students desperately needed a lifeline from this Government; instead this is a nail in the coffin.
‘Students are paying hundreds of pounds extra in energy bills, relying on foodbanks thanks to soaring inflation, and being forced to choose between heating and eating. Instead of addressing these issues, today’s announcements saw the Government say that they will be taking an extra £35 billion from graduates thanks to their student loan changes over the next five years.
‘Today’s statement was steeped in calculated cruelness. With the cost-of-living crisis getting worse, the Chancellor could have used today as a chance to show he has listened to our experiences.
‘He could have introduced rent protections, offered basic levels of maintenance support, and reversed his plans to cut the student loan repayment threshold. This would have protected the most vulnerable students – so it’s no surprise the Government ignored us.’
According to recent NUS research, highlighting the financial difficulties students face, one in four students have less than £50 to live off a month and five percent rely on food banks.
However, the NUS president said the Chancellor ‘continues to fail students’ by not committing to a ‘new vision of education’.
“Students from across the UK are desperate for something radically different – that’s why thousands joined the Student Strike earlier this month,’ she continues.
‘As the Chancellor continues to fail students and apply sticking plasters to the current marketised system, it exposes just how broken the profit-driven model is. The Government needs to finally commit to a new vision for education, which is fully funded, lifelong and accessible for all.’