Benefit battle


Found this story from the DT back in June which reports that;

The number of people who receive more in benefits and public services than they pay in tax is at record levels, official figures show.

More than half of households now take more from the public purse than they contribute, thanks to a generation of surging Government expenditure.

This astounded me, how can more than half the households be net takers even though employment is at record levels?

The answer is clear, the payment of in-work benefits.

As people continue to suffer on low wages and be exploited by zero-hour contracts, the government trumpet low unemployment levels as a marker of their success and yet this statistic is concealing the fact that more people than ever are also claiming benefits.

The government (and therefore tax payers) are effectively subsidising business to the tune of millions of pounds.

While having people in work is clearly a good thing, and I’m not against support for those in work on lower wages, it can’t be sustainable to continue to use public money in this way.  As the article points out;

A narrowing tax base is a danger to the stability of the public finances . . . just 300,000 high earners now pay 30 per cent of all income tax and 7.5 per cent of all tax.



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