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

VT82

rogerblack wrote: »

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

It's swings and roundabouts though isn't it? Didn't a sizable amount of the increase in inflation come from petrol prices and tuition fees, which are less likely to affect people on benefits, especially in the short term?

Any single measure of inflation is unlikely to be representative for most of the population.

shedboy94

JS477 wrote: »

If the rise in JSA is to be capped at 1% for the next three years it'll be £73.13 by the end so in effect it's a cut in their benefit in real terms if inflation remains above 1%.

Fair enough people who work may moan that they haven't had a pay rise in X number of years but they aren't having to try to live off £71 a week rising to £73.13 after three years!

The majority of people who are moaning about not getting a pay rise are also seeing a real term cut in their wages, yet they still have to pay their bills which are also rising........the majority of these working people are not getting their housing/council tax paid for or receiving other associated benefits and often have no mobey left after paying their bills either.
I personally would struggle to survive on £71pw, however the vast majority of benefit recipients are receiving a hell of a lot more than £71pw - especially when there are children and disabilities involved. There are many out there who are receiving more by claiming benefits than they would be by working simply because they get their main costs paid for and also get a large payment handed to them every week/month.

miduck

somethingcorporate wrote: »

And then they shift that labour to countries that have a wage rate 10% of that in the UK and rather than being topped up by the government benefits they are totally reliant upon them as they are now unemployed.

It's not as simple as a single solution.

VT82 wrote: »

It's swings and roundabouts though isn't it? Didn't a sizable amount of the increase in inflation come from petrol prices and tuition fees, which are less likely to affect people on benefits, especially in the short term?

Any single measure of inflation is unlikely to be representative for most of the population.

Two posts so excellent I had to quote them!

I think part of the problem is that all benefits are treated the same, whereas the level of disposable income will vary considerably according to the benefit claimed.

For those on JSA, with living and housing costs beyond their entitlement, the increase will be a great blow. For those on long term higher rate disability benefits and/ or those with several children, any increase will simply be an added bonus to an already generous provision.

wayne0

i agree with shedboy...

whilst i support the benefits system, i prefer to work for my living, despite actually being worse off for the fact... (nice isnt it)

i have to pay for fuel to travel to work, was a dirty uniform every night (trust me my uniform is DIRTY EVERY NIGHT, and have a shower every night and before work...

the costs for this as a result of working (perhaps not the shower) but uniform costs / travel dont get taken into account... even more so when to find work you travel out of your area to get a job ...

callum9999

laptop80 wrote: »

There may indeed be some slack for some or even a majority, but with so many people in such different situations it doesn't and can't possibly hold true for everyone. A fair number of people on benefits are clearly unable to make ends meet at the moment, as the increasing reliance on food banks would suggest. I would be concerned that these people are being pushed into greater hardship or reliance on private charity.

How much spare cash did you have when you were completely reliant on benefits? Would much of it have been swallowed up by the huge rises in energy prices we've seen since then? I spent a while on JSA about 10 years, but I was fortunate to be in a better situation than many others, being able to live with my parents. I don't think I'd fare quite so well today having to heat a house etc out of it, after the double digit gas & electric price rises we've endured for the past few years.

There was no spare cash - but there were a myriad of things that could easily have been cut back on. My mothers smoking for example, must have taken £15 odd a week out of the amount we had.

While I have no figures to back it up, I honestly believe the number of people who will be pushed over the brink by "only" getting a 1% increase in their handouts next year (KxMx - that is exactly what they are, handouts, which doesn't automatically mean you're a scrounger etc.) could be counted on one hand.

wayne0

miduck wrote: »

For those on long term higher rate disability benefits and/ or those with several children, any increase will simply be an added bonus to an already generous provision.

not too sure about "generous provision" but it certainly is more than most live on....

callum9999

wayne0 wrote: »

not too sure about "generous provision" but it certainly is more than most live on....

I'd call it generous. That's what the rest of my family is currently living on and they've never been more well-off. I remember last time I visited I actually got worried she hadn't been paying the mortgage etc. because there was such a large amount of money in her account!

shedboy94

wayne0 wrote: »

i agree with shedboy...

whilst i support the benefits system, i prefer to work for my living, despite actually being worse off for the fact... (nice isnt it)

i have to pay for fuel to travel to work, was a dirty uniform every night (trust me my uniform is DIRTY EVERY NIGHT, and have a shower every night and before work...

the costs for this as a result of working (perhaps not the shower) but uniform costs / travel dont get taken into account... even more so when to find work you travel out of your area to get a job ...

Have you looking into this for your uniform washing costs?

http://www.hmrc.gov.uk/incometax/relief-tools.htm

lazer

wayne0 wrote: »

i agree with shedboy...

whilst i support the benefits system, i prefer to work for my living, despite actually being worse off for the fact... (nice isnt it)

i have to pay for fuel to travel to work, was a dirty uniform every night (trust me my uniform is DIRTY EVERY NIGHT, and have a shower every night and before work...

the costs for this as a result of working (perhaps not the shower) but uniform costs / travel dont get taken into account... even more so when to find work you travel out of your area to get a job ...

If your uniform has a logo - you can claim back the tax on the cost of washing.

Russe11

somethingcorporate wrote: »

And then they shift that labour to countries that have a wage rate 10% of that in the UK and rather than being topped up by the government benefits they are totally reliant upon them as they are now unemployed.

It's not as simple as a single solution.

if companies move to achieve cheaper labour costs then they would do that regardless... where are they going to go where they are not going to be seeing double figure year on year increases over the next few years?