Currently on JSA want to move onto Working Tax Credits......

dktreesea

M.Johnson wrote: »

Yes and this has propped up the economy, by stoping all help these tens of thousands of business will also stop. Its not going to be pretty for the UK economy thats all.

Or the people affected will start working harder/smarter and build their businesses properly instead of just being able to coast along because their rent/school meals/council tax/living costs are being paid by other people.

M.Johnson_2

Unemployment numbers are coming down, this is what the government wants so soon interest rates can go back up to normal. If UC pushes everyone who is on WTC into the unemployment numbers it will be a disaster. I can see UC being delayed or changed a lot.

BigAunty

M.Johnson wrote: »

Unemployment numbers are coming down, this is what the government wants so soon interest rates can go back up to normal. If UC pushes everyone who is on WTC into the unemployment numbers it will be a disaster. I can see UC being delayed or changed a lot.

I can see UC being delayed through policy changes or IT systems issues, too.

However, tax credits, including for the self employed, got regarded as something that disguised true unemployment by encouraging people with poor business plans to become self employed and others to work in part time regular employment, just to massage the numbers.

Some are happy that this mask is being removed and that there is greater emphasis on households working longer hours and making their own businesses more efficient rather than continuing on the long-term benefit subsidies.

As I've stated before, the UC papers are explicitly critical about the long term benefit dependency of many of the self employed (some 675,000 self employed households are receiving WTC), many on the back of under achieving and dismal profit businesses that have no hope of supporting the households through their business activities. The govt want to encourage the self employed to either improve their business income, seek regular employment on top of it or wind down their businesses.

There seems to be some public and political support to bring back the historic distinctions in level of disposable income enjoyed between workless, semi workless and full time employed households which tax credits eroded, meaning that many households enjoy a standard of living similar to or above other households that have higher gross incomes.

I think if a household who gets WTC on the back of a terribly performing business gets ported onto JSA in the future, it may actually reduce public spending as the JSA could be less than the WTC. Plus it stops the culture of part time or low income self employment as a trigger to avoid the benefit cap by taking away this crutch and demanding that the recipients find full time regular employment to support themselves.

M.Johnson_2

BigAunty wrote: »

I can see UC being delayed through policy changes or IT systems issues, too.

However, tax credits, including for the self employed, got regarded as something that disguised true unemployment by encouraging people with poor business plans to become self employed and others to work in part time regular employment, just to massage the numbers.

Some are happy that this mask is being removed and that there is greater emphasis on households working longer hours and making their own businesses more efficient rather than continuing on the long-term benefit subsidies.

As I've stated before, the UC papers are explicitly critical about the long term benefit dependency of many of the self employed (some 675,000 self employed households are receiving WTC), many on the back of under achieving and dismal profit businesses that have no hope of supporting the households through their business activities. The govt want to encourage the self employed to either improve their business income, seek regular employment on top of it or wind down their businesses.

There seems to be some public and political support to bring back the historic distinctions in level of disposable income enjoyed between workless, semi workless and full time employed households which tax credits eroded, meaning that many households enjoy a standard of living similar to or above other households that have higher gross incomes.

I think if a household who gets WTC on the back of a terribly performing business gets ported onto JSA in the future, it may actually reduce public spending as the JSA could be less than the WTC. Plus it stops the culture of part time or low income self employment as a trigger to avoid the benefit cap by taking away this crutch and demanding that the recipients find full time regular employment to support themselves.

UC is being delayed, but will it be CHANGED by the time national roll out? If its not changed there will be less small businesses in the UK.