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Old 26-11-2016, 14:49   #24
RichardCoulter
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Re: Secret Thatcher plans to scrap the welfare state now released.

Quote:
Originally Posted by denphone View Post
Two of my brothers struggle to get that after deductions.
The thing is that means tested benefits depend on a persons needs and wages don't.

So a single healthy person living with their parents earning say £15,000 a year, will be better off than someone in a rented house with a partner and children with a disability receiving £20,000 in benefits.

It's not that benefits are too high, it's wages that are either too low or aren't enough to meet the needs of the employee.

However, increasing wages can lead to a business folding due to it becoming unviable. Why should an employer have to take into account how many children a person has, how much their rent is etc?

If they were forced to, they would only take on people with low needs.

Various Governments have tried to resolve this issue since the Tories introduced Family Income Supplement (FIS) in the 1970's to overcome this problem.

Thatcher reformed Social Security in the eighties and replaced FIS with Family Credit.

In turn Blair replaced this with Tax Credits.

Cameron started to replace Tax Credits with Universal Credit and then embarked on cutting these in work payments and forcing employers to pay more in wages.

This is fine for large profitable companies, after all, why should the taxpayer subsidise their wage bill because they choose to pay so little.

However, this will force some small businesses to close.

I think the best solution would be to negate the need for most people to claim in work benefits by forcing employers to pay more and employees to be more responsible eg by limiting how many children that they can have (they will normally be limited to receiving help for two only from next year).

This problem has been exacerbated by EU migrants coming here and claiming benefits.

To get round the problem of small businesses having to pay higher wages that they cannot afford, perhaps some scheme where the employer receives a subsidy to pay the extra wages could be considered??

Maybe a rebate scheme for Business Rates can be reduced??

There isn't an easy one size fits all solution when everything is taken into account.

---------- Post added at 13:49 ---------- Previous post was at 13:48 ----------

Quote:
Originally Posted by pip08456 View Post
Even the Express doesn't agree with you, I'm not going to do your research for you.
It isn't for me, it's you that's disputing the matter.

Last edited by RichardCoulter; 26-11-2016 at 14:53.
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