Tories: DLA And PIP To Be Taxed, All ESA Claimants To Be Hit By Freeze

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There are unconfirmed, but entirely credible, reports that the Conservative party is planning to make disability living allowance (DLA) and personal independence payment (PIP) taxable benefits in order to help pay for tax cuts for people currently in the top tax bracket.


In addition, we reveal that all employment and support allowance (ESA) claimants are to be hit with a freeze on their benefits if the Tories get back into government in 2015, not just claimants in the work-related activity group. George Osborne’s weasel words at the Conservative party conference misled many, including us.
We did, at least, spot the sneaky misrepresentation by IDS when he claimed that universal credit is being rolled out across the whole country.
It isn’t.


Only a tiny, pathetic ‘universal credit lite’ is being rolled out. The software for the complicated stuff still doesn’t exist, except in the imagination of IDS.

http://www.benefitsandwork.co.uk/news/2899-ids-plans-to-tax-pip-and-dla?utm_source=iContact&utm_medium=email&utm_campaign=Benefits%20and%20Work&utm_content=8+October+newsletter+2014


http://www.huffingtonpost.co.uk/lisa-egan/disability-benefits_b_5935988.html

tomtontom

If you read the original story in the Independent (rather than some massively biased 'activist'), the proposal is actually to increase the amounts for those on the lowest incomes and tax that received by those with higher incomes. I can't see a problem with this.

(Never thought I'd see myself agreeing with an IDS proposal!)

rogerblack

Ah yes.
Tax the vast numbers of people getting DLA or PIP, and earning millions.

I wonder if 'higher earners' in this case simply mean 'those entitled to the highest rates of contributory ESA and DLA'.

This can already exceed the personal allowance.

I am somewhat in favour of this - _IF_ it's revenue neutral.
That is - if recycled into higher PIP/DLA/ESA awards.

But that seems unlikely.

thorsoak

Because my OH and I scrimped scraped and downsized and paid off our mortgage, and now my savings are well under £1,000, my income (from state pension and a small private pension) is just over the limit for having an entitlement to pension credit of any sort - fair enough, the line has to be drawn somewhere. So when I was lucky enough to be offered a part-time job (21 hours starting at 6.45am, 4 days a week at just over nmw) I was - and still am - very happy.

I admit that I was taken aback when I realised that I am paying tax on my earnings, because my state pension is deducted from taxable allowances, yet colleagues who receive working tax credits and housing benefit (which in one case total more than my pension) are not taxed on these benefits. I do not begrudge them benefits - heaven knows how they would manage without them - but it does seem a tad unfair!

harry7075

If DLA & PIP do become taxable benefits they'll then be used for tax credit purposes.

[Deleted User]

I wouldn't worry tbh the tories won't win the next election,in fact its probably true to say they don't even want to