September CPI hits 5.2% - figures to set rises in benefits

Aberdeenangarse

The September inflation figures, which are due to be released on Tuesday, are crucial in setting various benefits and the state pension.

September's rise in the Consumer Prices Index (CPI) will be used to set things like April's rise in the state pension and Jobseekers' Allowance.

The CPI figure is expected to be close to 5%.

http://www.bbc.co.uk/news/business-15344297


Can someone remind me how much House prices have gone up this year?

Mr_Mumble

Sorry, rant incoming...

Why do benefit claimants have an automatic right to increases 3% higher than the average worker?

Telling public sector workers they'll get a pay freeze for two years while benefit claimants effectively get a 10% 'wage' hike over the same period is not signalling you want people to work! Looking at these incentives a neutral observer would think the government wanted as many people out of work as possible!

The government is giving the populous perverse incentives here and I'm not just targeting the tabloid definition of benefit scroungers. The well-to-do middle-class baby boomer, who is currently choosing when to retire, also has to look at these incentives.

Calculations by current and future non-workers could be a dangerous illusion - ask the public sector pensioner in Ireland or the unemployed in Greece! Yet, it's a decision made with reference to promises made by politicians who are effectively saying work is less beneficial this year than it was last year, the year before that, heck, five years ago based on RPI vs wage inflation.

If Cameron and Clegg were serious about getting Britain out of the doldrums they'd announce a freeze in all benefits for at least two years as they did last year for public sector employees. Yes, the howling from the Daily Mail (pensioners!) and Guardian (swampy!) would be deafening but at some point politicians either have the balls to do something meaningful (a benefit pay freeze would save £20bn over two years*) or they continue the sorry malaise of debt delusion. Waffling about mickey mouse schemes that spend or save a few million here and there (i.e. every housing scheme over the past couple of decades) is irrelevant.

*The £20bn figure - 5% of £200bn * 2 (yeah, rough figure that doesn't take into account the extra 0.25% from compounding) - shows how perverse government overseas spending is to me. It now costs Britain a net (after the money we're given back for EU projects) £10bn for EU membership and £8bn for foreign aid. the foreign aid bill will grow to £12bn before the end of this Parliament. Overall this unnecessary spending is 4.5% of all government revenue - a far cry from the spin of 0.7% of GDP.

pqrdef

Mr_Mumble wrote: »

Why do benefit claimants have an automatic right to increases 3% higher than the average worker?

Well, duh, because if benefits don't keep up with CPI, they'll soon decline to the point where they aren't enough to live on, which kind of defeats the whole object.

hallmark

Mr_Mumble wrote: »

Sorry, rant incoming...

Why do benefit claimants have an automatic right to increases 3% higher than the average worker?

Yes, a double-whammy for workers. Not only do they suffer a net decrease in income through approx 5% inflation but only 2% wage rise, but they ALSO have to pay an even higher benefits bill.

WestonDave

5.2% apparently!

2% payrise would be good - many in private sector jobs have had nothing since 2008!

The_White_Horse

because lefties are idiots and will ultimately destroy everything. benefits should be based on what the govt can afford to give these beggars. sickening.

lisyloo

Why do benefit claimants have an automatic right to increases 3% higher than the average worker?

I do see your point, but I would point out that a lot of benefit claimants are living at a subsistence level only so if they don't get the raise then they won't be able to afford even basic living costs.
I know some low paid workers and pensioners are also struggling, but most workers are earning more than merely subsistence level.
I'm not saying it's not difficult for workers, I'm saying that benefits claimants are in general closer to the bread line.
I'm sure we can all come up with exceptions to that, but I think it's true in general.

lisyloo

benefits should be based on what the govt can afford to give these beggars

I think that's quite offensive to some.
My MIL claims benefits. She worked for 58 years, many of them suffering from severe arthritis.
I certainly would not call her a beggar. Simply now at a time of life where she's taking back after 58 years of hard work and paying in.

StevieJ

RPI 5.6% there is another chunk going out of the exchequer in NS&I index linked glad I am on the right side of that one, a healthy 6.6% tax free over the past 12 months, us savers have never had it so good :beer:

Mallotum_X

The_White_Horse wrote: »

because lefties are idiots and will ultimately destroy everything. benefits should be based on what the govt can afford to give these beggars. sickening.

Maybe, except that if you give some of them so little as to be unable to live, we will get the bill for looking after their kids anyway, and then have to either put up with higher levels or crime, lawlessness and antisocial behaviour or pay for more police/protection.

Benefits do also give people something to lose, people with no money and nothing to lose are more likely to turn to crime.

Its a difficult balancing act, and one where the truely more deserving usually end up getting less than they need, and the load mouthed 'entitled' chavs get more than their fair share.

Rather than worry about an increase in what they get, i'd rather see more benefit cheats cracked down upon, concentrating effort on weeding out the people who abuse the system.

shortchanged_2

lisyloo wrote: »

I think that's quite offensive to some.
My MIL claims benefits. She worked for 58 years, many of them suffering from severe arthritis.
I certainly would not call her a beggar. Simply now at a time of life where she's taking back after 58 years of hard work and paying in.

That's the_white_horse for you lisyloo. His contributions are about as pleasant as a bout of hemorrhoids the size of Mike Tysons fist.