SPEye Joe Shows that Tax Credit Cuts Will Increase Welfare Bill

Joe’s argument is that at the moment, there’s £24 billion of welfare benefits going unclaimed, a large chunk of which is Housing Benefit. This will have to be paid as part of the government’s Universal Credit, and people facing cuts in their tax credits will automatically turn to looking at what other benefits they can claim instead.

He describes the Tories’ calculations as like those made on the back of fag packets, or the harebrained schemes concocted by Top Cat. The article begins:

Will the tax credit cut of £4bn cost up to £20bn per year more?

Yes as households will now by consequence claim what they are entitled to in other unclaimed benefits and the tax credit (TC) policy will end up costing much more in overall welfare cost.

The policy is so back of a fag packet that it may as well have been developed by TC himself above – though of Top Cat and Benny the Ball I couldn’t say for definite which one is Osborne and which one is IDS. Cameron, however, is clearly Officer Dibble waving the truncheon of financial privilege as he will surely do soon!

Once again we find the Conservatives zeal on “welfare” resulting in a policy that is ill-conceived and ends up costing more: Just like the combined HB reforms of bedroom tax, benefit cap, LHA and SAR caps which collectively cost £1 billion more per year according to the IFS; the same think tank whose report into Tax Credits now has to be considered by the Conservatives.

The tax credit household is surely the definition of the “hardworking family” that politicians love to state and in taking away tax credits which give an incentive to work the system now provides a disincentive to take up work. So by way of consequence will tax credit households now seek to claim the minimum £24 billion per year that goes unclaimed in welfare to compensate for the tax credit cuts?

In political terms attacking the low paid -the epitome of political rhetoric in the “hardworking family” – was always mindblowingly stupid and perhaps only serves to show how untouchable the Conservatives believe they are in their megalomania on welfare issues; or conversely, it exposes just how little scrutiny and opposition their welfare policies have had to date!

Now benefit claimants having access to unclaimed benefit money is what should happen. But with this government, I’m not so sure. The reason why most of this money is unclaimed is probably because the government has made it very difficult for anyone to find out what is available and just what they are entitled to. It’s an old tactic going all the way back to Thatcher and Major. Cuts would be made, information on benefits either withheld or otherwise difficult to acquire, and then at an election, lo! and behold! The government starts telling people how much benefit money is going unclaimed, and then starts boasting about how its committed to supporting the poor. Despite having done everything in its power to cut benefits over the previous four or five years.

I’ve reblogged Mike’s article about 300,000 people suddenly being sanctioned without warning, because the letters they were supposed to receive informing them of their sanction and how to appeal against it had not been sent out, due to an ‘administrative error’. How very convenient! I expect something similar will happen to information about what other benefits are available to cash-strapped claimants very soon.

As for Top Cat, I used to love that cartoon when I was a lad. Yeah, it was sort of a junior version of Sergeant Bilko with anthropomorphised cats, but it was funny, and cheered up many tea-time for children back in the ’70s. Unlike the Tories, who would like to put them back up chimneys as sweeps, where they belong, in line with their policy of bringing back Victorian values. So far, these seem to be hypocrisy, mass poverty, starvation, and rickets.

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