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

WestonDave

Politically its a two edged sword - its right that benefits provide enough to live on so those footing the bill have little choice but to swallow this increase, however it also helps maintain political support for benefit reforms to drive out fraud and to close off disincentives to work. Sometimes short term cost is worth it to sort out long term structural problems and save money in the long term.

Rinoa

Aberdeenangarse wrote: »

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


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

Good news for those with a mortgage though. In real terms they've had 5.2% wiped off what they owe.

shortchanged_2

The problem with these arguments, the same as the public sector arguments is that they tarnish everyone with the same brush.

Not all benefit claimants are 'spongers' and 'wasters'. It is not very nice for people who are genuine claimants to be talked about in such a manner.

While I agree there are plenty of people out there who are not deserving of benefits and that is where the focus needs to be to weed these people out. They are a blatant drain on resources.

I just feel uncomfortable when people refer to others on benefits as spongers when this is not always the case.

Graham_Devon

Rinoa wrote: »

Good news for those with a mortgage though. In real terms they've had 5.2% wiped off what they owe.

No they haven't. Don't be so bloody daft!

It's almost as if you are purposely looking stupid to invite such comments in response.

JonnyBravo

WestonDave wrote: »

5.2% apparently!

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

Dont worry increasing wage inflation is on its way. More and more people will start to get larger and larger rises IMO.

Blacklight

Graham_Devon wrote: »

No they haven't. Don't be so bloody daft!

It's almost as if you are purposely looking stupid to invite such comments in response.

Here we go again... '75% of people in the UK haven't had a pay rise for the last two years'.

Blacklight

JonnyBravo wrote: »

Dont worry increasing wage inflation is on its way. More and more people will start to get larger and larger rises IMO.

Indeed, look at the energy companies as one example - making a massive profit on the back of rising costs. Are British Gas going to tell all their workers they don't have any money for a pay rise in April?

Same thing is probably true of every haulage company in the UK adding margin to higher fuel costs.

WestonDave

Will be interesting to see if another part of the BBC report proves to be true - namely that various tax allowances (they state income tax, CGT and IHT) will also rise with inflation. That would give a basic rate tax payer £75 back next year and a higher rate tax payer potentially £850 back (if they change the 40% banding by 5% as well). Not sure we can afford this as a nation but it might be necessary to allow at least some of it to offset the "benefits rising" picture.

JonnyBravo

WestonDave wrote: »

Will be interesting to see if another part of the BBC report proves to be true - namely that various tax allowances (they state income tax, CGT and IHT) will also rise with inflation. That would give a basic rate tax payer £75 back next year and a higher rate tax payer potentially £850 back (if they change the 40% banding by 5% as well). Not sure we can afford this as a nation but it might be necessary to allow at least some of it to offset the "benefits rising" picture.

I think the fact the article uses the word "allowance" implies it to be the tax free allowance rather than the threshold for higher rate tax. My guess is that could even be frozen! :eek:

Kennyboy66

Blacklight wrote: »

Indeed, look at the energy companies as one example - making a massive profit on the back of rising costs. Are British Gas going to tell all their workers they don't have any money for a pay rise in April?

Same thing is probably true of every haulage company in the UK adding margin to higher fuel costs.

If only.

Try seeing how easy it is for haulage companies to increase rates at the moment when there is excess capacity in the industry.

If its the large "haulage" companies you are talking about, then most contracts would have a fuel "flex" in it. Typically margin is not added to increase in fuel costs.