Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Posts Tagged ‘Benefit Cuts

Government to Freeze (Cut) Benefits.

On Newsnight yesterday,

The government is considering ending the automatic annual increase in benefits in line with inflation, sources have told BBC Newsnight.

If implemented, the move would see many benefits frozen for two years, then rising only in line with average pay.

In recent years inflation has risen at a far higher rate than average earnings – Whitehall officials say a switch since 2008/9 would have saved £14bn.

The government needs to find £10bn of extra savings in the welfare budget.

Opinion is being softened up for this, and it was noteworthy that the Labour MP on the programme did not go for an all-out attack on the proposals.

Sources said they were mindful of the risk of pushing benefit claimants into poverty, but that there was potential for massive savings.

“Benefits are rising faster than earnings; this does not encourage people to go to work. Benefits were never meant to be a salary replacement,” one told the BBC.

“We are aware that there is the effect on poverty to be considered but we believe that benefits have risen by so much over the last few years that a freeze for a couple of years would help people deal with the transfer. When you see the savings possible, it is simply mind-boggling,” the informant added.

In the report and discussion it seemed probable that the most likely target would be JSA.

This will effectively mean a cut in benefits.

At their low-level even if the lead-total of inflation is (in a recession) decreasing, ending the link means the loss of a few, crucial, extra pounds.

We note that Oxfam states that, in the “last 5 years, food prices have risen by 30.5%”.

This raise has, if anything, accelerated.

Anybody highly conscious of prices, as we are, noticed how basics like bread, oil and pasta, have gone up. The cost of fish is exorbitant.

We should also remember that those on benefits are going to have to pay a percentage of Council Tax, those on Housing Benefits will have to pay a part of their rent from their dole.

Pushing people into poverty is no doubt very appealing when you can make “massive savings”.

The ‘Source who said they were “mindful'”about this  was being intentionally or not, ironic.

The Liberal-Conservative Coalition does not care about the out-of-work being pushed to the bread-line.

Ian Duncan Smith probably get his fish freshly caught in Cornwell, freighted to his kitchen and the House-Keeper pays.

Written by Andrew Coates

September 18, 2012 at 9:30 am