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MSE News: Autumn Statement: Benefits to rise by just 1%

Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
edited 5 December 2012 at 1:44PM in Benefits & tax credits
"Chancellor George Osborne has announced a blow for benefits recipients, with handouts rising by less than the rate of in..."
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Comments

  • paddedjohn
    paddedjohn Posts: 7,512 Forumite
    Part of the Furniture
    That's good, at least they are getting something. Most of the workforce that are paying the tax's to fund the benefits won't be getting a rise.
    Be Alert..........Britain needs lerts.
  • Hmph. I havent had a payrise for 4 years.
  • SailorSam
    SailorSam Posts: 22,754 Forumite
    10,000 Posts Combo Breaker
    There'll be many people reading that who can tell you their benefits have been cut by a lot more than 1% and if the warnings are true there's much worse to come.
    Liverpool is one of the wonders of Britain,
    What it may grow to in time, I know not what.

    Daniel Defoe: 1725.
  • laptop80
    laptop80 Posts: 203 Forumite
    Tenth Anniversary Combo Breaker
    edited 5 December 2012 at 2:06PM
    All well and good, but isn't the idea of benefits that they're the minimum required to live on? I wasn't aware that Jobseekers Allowance etc had a luxury / disposable income element built in that enables recipients to soak up a rise that's substantially less than the rate of inflation. I'm sure received wisdom will tell me I'm wrong and that claimants do indeed have lots of spare cash out of their £56/£71 a week for mobile phones and plasma TVs.

    If I don't get a pay rise it squeezes me and I have to cut out some things, but it's more likely to be non-essentials. If you're on benefits and spending it on food, clothing and heating as it is, aren't you forced to choose which of these essentials you'll do without when the price rises far more than your benefit?
  • LunaLady
    LunaLady Posts: 1,625 Forumite
    Why do MSE put these threads here then say that these boards are not the place for discussion?

    This thread will end badly like they all do.
    SPC #1813
    Addicted to collecting Nectar Points!! :D
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    laptop80 wrote: »
    All well and good, but isn't the idea of benefits that they're the minimum required to live on? I wasn't aware that Jobseekers Allowance etc had a luxury / disposable income element built in that enables recipients to soak up a rise that's substantially less than the rate of inflation.

    And will the rates be increased by the deficit after the three years?
    It's fairly likely that inflation is going to be enough to effectively knock a fiver off the weekly JSA awards.

    And more off those who are unable to work due to illness or disability.

    Inflation for the poorest is significantly higher than the nominal figure, due to fuel and other things being a larger slice of the budget.
  • schrodie
    schrodie Posts: 8,410 Forumite
    edited 5 December 2012 at 2:26PM
    I note that ESA will increase by 1% but the Support Component will increase in lines with prices. However what will happen to those who are still on Incapacity Benefit will they remain on the CPI uprating?

    However what a difference a year makes. In last year's Autumn Statement Obsorne said:-

    " I also want to protect those who are not able to work because of their disabilities and those, who through no fault of their own, have lost jobs and are trying to find work.

    So I can confirm that we will uprate working age benefits in line with September’s CPI inflation number of 5.2%.

    This will be a significant boost to the incomes of the poorest, especially when inflation is forecast to be considerably less than that by next April.
    "
  • mel48rose
    mel48rose Posts: 513 Forumite
    Uniform Washer
    I suppose any increase is better than nothing!
    If you change nothing, nothing will change!!
  • LunaLady
    LunaLady Posts: 1,625 Forumite
    mel48rose wrote: »
    I suppose any increase is better than nothing!

    Its more than many people will be getting!
    SPC #1813
    Addicted to collecting Nectar Points!! :D
  • sja75
    sja75 Posts: 574 Forumite
    edited 5 December 2012 at 2:45PM
    rogerblack wrote: »
    And will the rates be increased by the deficit after the three years?
    It's fairly likely that inflation is going to be enough to effectively knock a fiver off the weekly JSA awards.

    And more off those who are unable to work due to illness or disability.

    Inflation for the poorest is significantly higher than the nominal figure, due to fuel and other things being a larger slice of the budget.

    Agreed...

    When factoring in the Bedroom Tax and the average Council Tax Contribution of at least 20% it is certainly not an increase in entitlements. Quite the opposite in reality.
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