If benefits stop as the government have no money

lil_me

Just wondering what those who currently rely on benefits for their income or majority of their income would do.

This is extreme, but I don't think something that 'could never happen' . For those who are on benefits, if the recession really hits hard and the government needed to make cut backs benefits could be stopped, this would no doubt cause multiple problems.

With savings for those on most benefits being restricted, it must be difficult for those who survive on benefits to 'save for a rainy day'

Just wondered what those who rely on benefits would do in this sort of situation, if after tonight the government couldn't pay any benefits (inc child benefit) for lets say a month or 6 months? What would you do?

Contains_Mild_Peril

I'd say this is more a topic for Discussion Time in the Arms.
Some would move in with relatives who could support them, some would turn to prostitution and crime, some (including children of benefit claimants) would be exploited by employers paying far less than minimum wage, and there would still be a shortfall in provision for people's most basic needs, which charities would have to do their best with, I suppose.

stazi

The Govt has no money anyway.

The only money any Govt has is taxpayers money. So long as taxpayers (inc businesses) have pockets (and purses), the Govt will have its hands on your- now their money- to spend on all/some of us.

We all have to budget- some daily/weekly/monthly. All Govt's budget years in advance- that's why a census is needed every 10 years. The Gov't does know, for example, how many kids will leave school and join the workforce in 2015; how many pensioners there will be in 2020 etc; how many (approx)births/deaths there will be in 2025 etc. It knows how much money it will need/get using these examples.

With all these forcasts, budgets are drawn up and then revenues are assumed/calculated to pay for this spending.

If all else fails and the Bank of England is robbed,- all Gov't beg (Premium Bonds/National Savings), steal (Income Tax/VAT/NIC) and borrow (Govt Bonds etc).

dmg24

I would like to think that we would all help each other out.

Removes rose tinted glasses and comes back to reality ...

I suppose those that would suffer most would be those that have no one, and sadly they are likely to be the most vulnerable groups irrespective of income, such as the elderly and those with mental health problems.

Even saying that, the generosity of (some) strangers never ceases to amaze me.

pipkin71

lil_me wrote: »

Just wondering what those who currently rely on benefits for their income or majority of their income would do.

This is extreme, but I don't think something that 'could never happen' . For those who are on benefits, if the recession really hits hard and the government needed to make cut backs benefits could be stopped, this would no doubt cause multiple problems.

With savings for those on most benefits being restricted, it must be difficult for those who survive on benefits to 'save for a rainy day'

Just wondered what those who rely on benefits would do in this sort of situation, if after tonight the government couldn't pay any benefits (inc child benefit) for lets say a month or 6 months? What would you do?

Perhaps the government would look to cutting the benefits that are wtc, ctc and the childcare voucher first so that the poorest in society at least had some money to live on if they were unable to support themselves.

If all benefits were truly cut, I could see many families losing their home, as they couldn't afford to keep it. Many people having to leave their jobs because they could not 100% afford the childcare costs. Many vulnerable members of society dying, and a huge increase in crime.

Cutting all benefits wouldn't be pleasant for a huge proportion of society, and not just those who don't or can't work to support themselves.

Interresting thought though lil_me. Personally, we would probably have to go back home to my family, for them to take care of us.

Pipkin xxxx

seven-day-weekend

In our own case, not much would happen because although my husband does receive Incapacity Benefit, we do have other income (his Teachers' pension) and also savings. IB is the only Benefit we have coming in.

If the State Pension is included in things that would not be paid out (neither of us receive it yet) then we would be stoney broke but could probably manage to get by because I too have a small Occupational Pension to come in 2014. We have no rent or mortgage to pay. So, we could probably manage.

If any benefits were to be cut I think it should be things like Tax Credits first because that way at least everybody has something, rather than nothing.

pipkin71

seven-day-weekend wrote: »

If any benefits were to be cut I think it should be things like Tax Credits first because that way at least everybody has something, rather than nothing.

That was my thinking too s-d-w.

I do wonder how many of those who don't want to work would seriously start to look if there was no government handout, or whether they would turn to crime in order to survive.

Maybe things like wage rises in the public sector, bonuses, that sort of thing would also have to stop. Not fair on the worker, I know, but if the situation did get really bad, would the vulnerable just be left with nothing?

Perhaps, in reality, the national debt would increase to cover the amount spent on benefits, but for how long could that happen?

Should they start by only giving child benefit to those below a certain income who need it rather than just take it because it's there and available

The system certainly needs an overhaul, and not just for those who rely solely on benefits, without any other source of income.

Pipkin xxxx

brightonman123

Govt gets Boe to print more money, i guess. or start another war, to justify tax raises..

lil_me

Probably should have posted it in the arms, sorry.

Yes stazi I know what you're saying, but if the income of the government drastically reduces from our taxes etc, then it could happen.

The thought of crime being used to just survive is what would scare me the most, not being able to trust my neighbour who'd lost their job etc. I suppose it's the way it works in countries without a financial support system in place for those on low incomes, either families support them or they use crime to survive.

pipkin71

brightonman123 wrote: »

Govt gets Boe to print more money, i guess. or start another war, to justify tax raises..

What would happen if the BoE was asked to print more money. Perhaps a stupid question, but why can they not do that now rather than borrowing?

Pipkin xxxx

peediedj

just get mp,s to earn less,then my son can still get dla