There is a big problem in the United Kingdom. The simple fact is that through successive governments and the banking sector we have ended up in a situation where a lot more is leaving the country than comeing into it. On July 8th There was a summer budget in the UK which included some quite nasty benefit changes which will increase the worry for alot of familys in the UK. I actually recorded a warning message about this the week before which you can see below.
The government, in fact, any government has a basic problem and that is they cannot understand the full impact that their decisions have on different families and different situations. They get stuck in the so called City Of Westminster bubble and it is beyond them.
The problem is with this budget is that they wanted to carve £12 billion from the welfare budget and it will cause issues for a lot of people. Below is an explanation of some of the major changes to come about.
“An Increase In The Personal Allowance”
This means that the amount we can earn before any tax is paid has increased to £11,000 pounds per year. This in itself sounds good but there are a couple of problems they are.
How can a family survive on that amount without the help?
Surely we should get an income top up to provide assistance?
“Introduction Of A Living Wage”
This is a noble scheme in that on paper it would provide a reasonable income for more families, the problem is it would put a lot more people into the income tax bracket on the basis of full time work that government so wishes for so in effect you really end up in the same situation you were in. I have to ask is £7.20 an hour and a personal allowance increase enough?
“A Four Year Freeze In Welfare Benefits”
This is the real killer. Tax Credits, Housing Benefit, ESA, Literally everything has been frozen at its current rate for four years. Which basically means if there is any change in inflation (the cost of living goes up) people are going to be worse off overall.
“Tax Credit Income Reducer Halved”
Before the 2015 budget you could earn up to just over £6000 per year before any tax credits were reduced from your income. This has now been halved to just over £3000 per year so people will lose their tax credits a lot sooner than they would have done otherwise.
“ESA Rates Reduced”
This is the cut that really stuck in my throat! ESA is there to support people who cannot work for whatever reason, usually this is due to a prolonged period of ill health. It is not strictly true that anyone on ESA can not work so there is something called the work related activity group. Anyone in this group is supposed to get help back into work with an additional £40 in benefits paid over the course of a week.
Guess what folks this additional £40 per week has been taken away which will make the sick and needy worse off as well.
Ian Duncan Smith the disgusting creature that he is has even floated the idea of people saving for their own sickness and unemployment so the state doesn’t have to pay anything at all. You can read that article right here.
It is quickly becoming apparent that sooner or later we are going to be totally left to our own devices and not just made to feel worse off by those we elect. I saw this coming. In times like this you have to improvise and overcome, not just fall into despair at the governments thoughtless actions.
Check out this video that I recorded today which will explain what I think a little clearer.
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Remember do not be lead to despair by those in power with no idea. There are an awful lot of changes that have been made to the welfare system in the 2015 budget but in the end you can make the difference.