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MSE News: Benefits to rise by less than inflation: full breakdown

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MSE News: Benefits to rise by less than inflation: full breakdown

edited 30 November -1 at 1:00AM in Benefits & Tax Credits
138 replies 10.6K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 30 November -1 at 1:00AM in Benefits & Tax Credits
"The Government dealt a huge blow to benefit recipients this week by revealing a 1% rise for many..."
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Replies

  • RafterRafter Forumite
    3.8K posts
    Not sure how I feel on this one.

    If benefits really have risen by twice the rate of earnings then it kind of feels right that benefits should be squeezed a little.

    However, if social charities believe that this will cause genuine hardship, and our benefits are much lower than other civilised societies then my view would change.

    I would hate to live in the US where the quality of your healthcare, or even your ability to feed yourself was dependent on charity and food stamps because the welfare system and health system doesn't provide you with what I would consider to be basic human rights in a society than can afford them.

    R.
    Smile :), it makes people wonder what you have been up to.
  • sja75sja75 Forumite
    574 posts
    Does the ESA Support Group receive the 1% or the 2.2%?
  • mcjordimcjordi Forumite
    4.2K posts
    i do belive the disabled are exempt from the changes and benefits will rise with inflation

    edit.. seems like i will get 1% but my disabilty premium should in theory rise 2.2?
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  • Yes, its sad for people on benefits.

    however, it is exactly the same for people who are employed who receive either no pay increase or an increase less than inflation aswell.

    So that's most people really.
  • sja75sja75 Forumite
    574 posts
    I thought that too mcjordi... I receive EDP on ESA so should that qualify as an exemption?

    Interesting. So the increase is applied for the entire entitlement or just the EDP component?
  • mcjordimcjordi Forumite
    4.2K posts
    I do feel everyone should shoulder some burden but it just seems the diasabed and less fortunate are taking more of it than others.

    Sja75- im really not sure and cant find that much out about it either. i think we shall have to wait and see what happens in april when any rise will come in to affect
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  • I've not seen it spelled out anywhere what happens with regards those on ESA.

    I gather that those in the work-related group are not protected, and the 1% applies to them.

    To those in the support group - is the support component uprated by the normal amount (for maybe an extra 30p/week), or by enough to make up the difference in the basic allowance only rising 1% - maybe a pound a week.

    I suspect the former.
  • edited 7 December 2012 at 2:00PM
    KxMxKxMx Forumite
    8.7K posts
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    edited 7 December 2012 at 2:00PM
    So Incapacity up 1% (if at all)
    ESA up 1%
    IS (claimed for illness) up 1%
    DLA up 2,2% but loads are being kicked off anyway with the introduction of PIP.

    Protecting the disabled? Don't make me laugh.
    Yes, its sad for people on benefits.

    however, it is exactly the same for people who are employed who receive either no pay increase or an increase less than inflation aswell.

    So that's most people really.

    Those in employment can find a better paid job to increase their income. I know how tough the jobs market is but there is always that chance, even if it is small.

    For the majority on disability benefits there is no hope and that will be the income they are stuck with. They don't always have the option to get better and find a job to increase their income like those in employment do.
  • and of course gas, electricity and water will all continue their inexorable upwards rise making it even harder for most people of modest means to get by. And when the localisation of council tax benefit begins to hit home people will be struggling even more. It is not just those who are not working who will be affected, in work poverty will increase too. Grim times are ahead for many.
  • Based on the government's official stats, it is indeed true that the gap between benefits and earnings has closed due to most workers receiving less than inflation pay rises.

    However, it's also true that benefit recipients haven't become better off per se but have merely kept pace with inflation, or at least CPI inflation.

    I find it a little odd that so many workers hereabouts have adopted a beggar thy neighbour, I'm suffering so others should too attitude because the vast majority of households in the UK are in receipt of at least one benefit and it's odds on that most of them are too... and, as an example, the millions who get Tax Credits to supplement their wages will also be subject to a below inflation 1% rise in payments for the next three years so will also lose out that way too.

    The UK Treasury hasn't got a deficit or fiscal forecast correct for about ten years straight. It's a very fair bet then that Osborne's downgraded ones from earlier that he announced on Wednesday will also be over-optimistic. Even based on those they want to find another £27 billion in savings by April 2018.

    To do that they'd have to go after pensioners' (and every other welfare expenditure) because to further drain society's poorest (mostly young and many of them aggressive chavs) would risk serious civil unrest in spite of a massive matrix of CCTV cameras everywhere which was grown to help protect the state from the consequences of Britain's rapid decline which has really only just begun to unfold.

    There's speculation that the trigger (i.e. a currency crisis) for what will prove to be the cratering of UK Plc will be announced later today when credit agency Fitch takes the AAA off the UK's debt.
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