AUSTERITY FOR WHOM?

[tony1851]

Writing in today's Times, the economist David Smith points out that the welfare benefits bill has risen 7.7% over the last 12 months. So much for the Coalition's supposed crackdown on overspending.
Why is it that no government seems capable of getting to grips, once and for all, with the benefits culture? It seems easier for them not to rock the boat and to just keep taxing working people and businesses to pay for this profligacy.

 

[Diane2]

DLA is being tackled in April 2013.....brave move methinks.

 

[joe-90]

It's the tax credit system that is the big burden. The answer is simple. Stop paying tax credit and raise the minimum wage to a true living wage like it used to be a couple of decades ago. The notion that the employer can pay peanuts and the Government tops up the wage is just plain economics of the madhouse.

 

[Norcon]

The limp dems are the greatest burden. Lose them and the tories will let the axe fall.

 

[joe-90]

The Tories are hopeless. Will they get rid of your beloved EEs? Nope - so the country will go bust.

 

[^woody^]

The welfare bill has risen due to the number of new applicants out of work, not the benefit culture claimants claiming more!

The reforms will be coming in starting next year, when the Welfare Reform Act 2012 aka the "bedroom tax" kicks in.

In addition, housing benefit claimants will be be paid their benefit directly rather than it going straight to landlords. This will (hopefully) reduce dodgy landlord claims, and also force the claimants into some basic appreciation of money management.

Then comes the Universal credit, where the claims which now go to several agencies will be paid by just one. Again, hopefully reducing dodgy claims

 

[calorific]

In addition, housing benefit claimants will be be paid their benefit directly rather than it going straight to landlords. This will (hopefully) reduce dodgy landlord claims, and also force the claimants into some basic appreciation of money management.

Hmm, it will also be the start of many problems for many legit landlords who will have to start the lengthy eviction procedures for those tenants who decide to divert the money to other places. Had it happen to us - XMas was an interesting time as the tenant decided to spend her housing benefit on prezzies rather than pay her rent. We never got it back from her and the council weren't interested with her fraudulent use of public money. Took us the best part of a year to get rid of her, and we'll never have DSS tenants again!

 

[Diane2]

In addition, housing benefit claimants will be be paid their benefit directly rather than it going straight to landlords. This will (hopefully) reduce dodgy landlord claims, and also force the claimants into some basic appreciation of money management.

Hmm, it will also be the start of many problems for many legit landlords who will have to start the lengthy eviction procedures for those tenants who decide to divert the money to other places. Had it happen to us - XMas was an interesting time as the tenant decided to spend her housing benefit on prezzies rather than pay her rent. We never got it back from her and the council weren't interested with her fraudulent use of public money. Took us the best part of a year to get rid of her, and we'll never have DSS tenants again!

they tried this in Blackpool last year......funnily enough.....it didnt work.

 

[tony1851]

The welfare bill has risen due to the number of new applicants out of work, not the benefit culture claimants claiming more!

I agree with most of what you say, but as regards unemloyment benefit, Smith makes the point that at 2.5 million, the claimant count is close to what it was 3 years ago.
He maintains that that part of the welfare bill has risen because benefits have risen jn line with inflation, while most working people have had a wage squeeze.

 

[^woody^]

Hmm, it will also be the start of many problems for many legit landlords

That is a probability. A tenant with little means, suddenly given £100 per week extra is not going to think of the rent first and foremost.

But in time, faced with that very real prospect of eviction, and no more guaranteed alternative accommodation, then the hope is that they will wise up and realise that they have to take responsibility for their own lives, and not rely on the state for everything

How long this will take, and how the courts deal with the eviction process is unknown though.

 

[^woody^]

He maintains that that part of the welfare bill has risen because benefits have risen jn line with inflation, while most working people have had a wage squeeze.

He's talking nonsense

Look at the benefits - they are almost impossible to live on and have increased little over the years, whilst living costs have risen sharply

A big drain is housing benefit - and housing benefit payments to private landlords at top rates is the culprit.

 

[calorific]

The trouble with a colander is that it's got a lot of holes in it

 

[Harbourwoodwork]

I'm fed up with subsidising things buy cutting thing's out starting with luxuries like foreign holiday's then slowly sliding toward's ordniary things

 

[ladylola]

A big drain is housing benefit - and housing benefit payments to private landlords at top rates is the culprit.

I have to agree on this one.
I've got my parents house that I'm doing up to rent out and recently went to a landlords forum run by the local council. Most of the talk there was about the reduction in housing benefit affecting their incomes, the fact that they had been milking the system and generally forcing up rents wasn't considered.

 

[Diane2]

He maintains that that part of the welfare bill has risen because benefits have risen jn line with inflation, while most working people have had a wage squeeze.

He's talking nonsense

Look at the benefits - they are almost impossible to live on and have increased little over the years, whilst living costs have risen sharply

A big drain is housing benefit - and housing benefit payments to private landlords at top rates is the culprit.

most of my caseload are on more in benefits than i earn in a month.....not counting housing and council tax benefit (theirs not mne...i dont qualify)....but counting DLA and ESA, though....i wouldnt swap my life for theirs...