George Osbourne Planning Tax credit cuts: Fair?

[Olive]

Yea, but you can't easily fix problems from 15 years ago.

 

It's ridiculous in London right now, but then again would you think living in London and working the checkout at Sports Direct was a good idea financially??

 

People in London can't see past the M25, but will complain all day that they can't afford rent either.

 

Very true.

 

It's just that I don't see the issue approached from the housing cost angle too often, it's like an elephant in the room. IDS is all for capping housing benefits, but nothing for curbing housing costs.

[Cyclone]

He can't do much to curb housing costs, and he doesn't want to trigger house price deflation. So long as the market ticks along slowly, ideally a little below wage inflation, that's about the best that can be hoped for.

[Mister M]

Genuine question - would there have been any need for working tax credits if housing costs hadn't become so out of kilter? Wouldn't it have been more cost effective to sort out the housing market 15 years ago instead of topping up people's earnings?

 

Maybe Chem1st can help me out with this question?

 

Hi Olive,

 

There was a very good article in the Guardian last week, that may help with your question:

 

In 2009-10, according to House of Commons figures, 478,000 people with jobs claimed housing benefit, at a cost of £2.2bn. By 2014-15, it was 962,000 and £4.6bn, and it’s set to continue rising if things don’t change.

 

http://www.theguardian.com/commentisfree/2015/jun/26/benefits-cheats-employers-milk-system-in-work-benefit

[Eater Sundae]

He can't do much to curb housing costs, and he doesn't want to trigger house price deflation. So long as the market ticks along slowly, ideally a little below wage inflation, that's about the best that can be hoped for.

 

Unless a lot more houses are built.

[geared]

Is that something George has control of?

[Olive]

Hi Olive,

 

There was a very good article in the Guardian last week, that may help with your question:

 

In 2009-10, according to House of Commons figures, 478,000 people with jobs claimed housing benefit, at a cost of £2.2bn. By 2014-15, it was 962,000 and £4.6bn, and it’s set to continue rising if things don’t change.

 

http://www.theguardian.com/commentisfree/2015/jun/26/benefits-cheats-employers-milk-system-in-work-benefit

 

Thanks Mister M. The article does get round to housing costs in the end, but it spends a lot of time blaming employers for paying poverty wages, which is fair to an extent, and seems to have become more prevalent as employers have come to exploit in work benefits.

 

But to what extent is it employers' responsibility to keep up with an overheated property market, with BTL landlords stoking things up even more? Sure, pay a living wage, but when our property market is so nuts, how's that possible?

[chem1st]

Genuine question - would there have been any need for working tax credits if housing costs hadn't become so out of kilter? Wouldn't it have been more cost effective to sort out the housing market 15 years ago instead of topping up people's earnings?

 

Maybe Chem1st can help me out with this question?

 

WTC is akin to speenhamland.

 

Not really needed. Can only function as a mechanism to distort dole in a sense.

 

A bonus benefit for workers. What with rents rising and hb encompassing all. All incomes are lowered to lowest common denominator of dole. WTC essentially increases that dole somewhat to make a two tier dole system. All remain subserviant to ability to claim housing benefit (or LHA). Massive amounts of money can be saved by making housing affordable. But for that to happen state would have to change. Currently it exists to push up price of housing and ensure money flows to housing+land and those who own it.

[taxman]

So when is IDS' s Universal Credit coming in? 2057 at this rate.

[geared]

So when is IDS' s Universal Credit coming in? 2057 at this rate.

 

Looking at the news today it looks like he's got all mixed up with 'Universal Credit'

 

As he seemed to think that he had been given a 'Universal Credit Card'

 

http://www.bbc.co.uk/news/uk-politics-33349595

 

 

Iain Duncan Smith had his official credit card suspended after running up more than £1,000 in expenses debts.

 

The work and pensions secretary was among 19 MPs subject to action by the Commons watchdog after failing to show spending was valid.

 

The debts, which have been since paid off, were disclosed in response to an FOI request by the Press Association.

 

The Independent Parliamentary Standards Authority issues MPs with credit cards to pay for items such as accommodation.

Mr Duncan Smith's card was blocked when he owed £1,057.28. He does not currently have any debt.

 

Among others whose cards were stopped were Labour's work and pensions spokeswoman Rachel Reeves and former Lib Dem minister Simon Hughes. Both have since cleared their debts.

 

The politicians have to prove their spending is genuine at the end of every month or they build up debts to the watchdog.

[truman]

Are you happy that someone can claim up to £26k in benefits and not lift a finger - tax free, would need to earn £33k to get same

 

Errr no...What part of my post made you think I was?