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Equalities - case studies
The case studies below illustrate how the Treasury considers equality issues when making decisions.
Case study: Budget 2011 process
In line with its statutory obligations, the Government considers the impact of policy measures on groups with protected characteristics as part of the policy development process. Advice to ministers on individual Budget 2011 measures included a summary of impacts, including the impact on equalities. Equalities analysis was included in advice submitted to the Chancellor before he made final decisions.
Tax Information and Impact Notes were produced for tax measures announced in Budget 2011. These specifically included the impact on equalities. These were personally signed by the Exchequer Secretary confirming that it was a reasonable view of the impact of the measures, given available evidence. These were published as annex A in the consultation on draft legislation for the Finance Bill 2012 (PDF).
Case study: 2010 Spending review
Spending reviews decide overall budgets for government departments – this is a Treasury responsibility. Decisions on how to allocate money within each department’s budget are decisions led by departments, not the Treasury.
In addition to overall settlements, the Spending Review document also contained some departmental policy changes. Some were decisions departments had made in parallel with the Spending Review about how they would live within their new settlements, and some were planning assumptions.
In 2010 the Treasury had greater policy making responsibility for a small number of specific areas – notably welfare and public service pensions.
Equalities were considered systematically during the 2010 Spending Review, ensuring that Ministers were aware of the impact on protected groups when deciding how to allocate budgets between departments. Departments provided analysis of the impact on equalities as part of their submissions to the Treasury. Quality assurance was provided by Departmental Chief Economists who signed off each submission. The Government Equalities Office led on equalities issues and reminded departments of their responsibilities. To support departments in this process, a series of instructions, workshops and meetings were organised. Departmental equalities submissions were analysed by Treasury officials and used as the basis for assessing the impact on equality. Ministers had these assessments in advance – and at the time - of making all final decisions.
Where the Treasury had greater decision making responsibility for budget allocations (welfare and public service pensions) there was additional analysis. For welfare decisions, an equalities screening tool was used to give Ministers thorough and digestible analysis of individual welfare proposals. Ministers also hosted an equalities roundtable. The 2010 Spending Review was the first ever to publish an overview of the impact on equalities alongside the Spending Review document. Settlement letters also reminded departments of their equalities duties.
Equalities considerations shaped decisions throughout the 2010 Spending Review. The Government took a dynamic approach to equality, prioritising services that improve life chances over passive income transfers. Spending on health and education was protected - areas strongly associated with positive equality impacts. This drove many other decisions - requiring budgets elsewhere to be cut further. Other decisions were made to mitigate impacts, such as detailed design of the benefit reforms (exempting people with disabilities from the benefit cap).
