Disability Cuts to Fund Tax Reductions for the Middle Classes.
Cutting Personal Independent Payments to reduce Disabled Burden on Wealthy.
Budget 2016: George Osborne’s £1bn Disabled Cut To Fund ‘Middle Class Tax Giveaway’ Riles Campaigners
The Chancellor is allegedly preparing to use the £130 slashed from 600,000 disabled people’s PIP – Personal Independence Payment – support to raise the threshold at which people start paying 40p tax.
But fears are already mounting, with one senior Labour frontbencher saying the move would be “obscene”.
Owen Smith, shadow work and pensions secretary, posted on Twitter: “Already wicked to take another £1.2 billion from disabled, but truly obscene if switched for tax cuts at the Budget.”
One can only assume that in line with policies to stop the feckless poor from breeding – cuts in family allowances – this is part of a plan to stop people who are disabled taking up PIPs and no doubt to reduce the numbers of the disabled.
The Observer analyses the figures,
Research conducted by the foundation for the Observer has established that the cuts – including moves to increase the threshold at which the 40p rate of tax becomes payable from £42,385 to £50,000 by 2020 – will cost £2bn over the next two years, with 85% of the windfall going to the richest half of households.
Torsten Bell, director of Resolution Foundation, said: “Keeping on track with those commitments would mean finding £2bn over the next two years and would overwhelmingly benefit richer households.
“The priority should be supporting low- and middle-income families, instead of going down this route of expensive and poorly targeted tax cuts.”
Osborne also plans to increase the personal tax-free allowance, which is due to rise to £10,800 from April and £11,000 in 2017, reaching £12,500 by 2020. But 4.6 million low-paid workers will gain nothing from these cuts, because they do not earn enough to pay tax. Resolution Foundation says low-income families on universal credit will have two-thirds of any tax cut clawed back through reduced benefits.