So, today we had the first budget of the new government, having seen lots of dire predictions as to what the budget would say, I thought I'ed take a look at the main points and see how many I judge bad or good.
Pay and tax:
The surprise annoucement of a raise in the minimum wage to 7.20, next year and to 9.00 over the next five years is good for myself and other low paid workers. The increase in the tax free allowance also means that I will get to keep more of the increase in pay. However, Whilst, it is good for me personnaly, I do have some concerns. I work mainly for the NHS, I suspect there are a lot of NHS staff that will get a pay raise from this. How much of the vert welcome extra money pledged to the NHS will get swallowed up in paying the new pay rates?
A hike in the national minimum wage could also be an issue for small businesses or other organasitions that employ people but don't have a lot of spare cash e.g.museums, churches and charities. The cut in corperation tax might help some businesses, but there may also be price raises of goods and services.
Inheriterance tax is something that I hope won't affect me for a while yet and to be honest I don't think I will be over the limit, so not something I need to worry about. However in general I think the threshold increase is good.
Welfare and Pensions
Child benefit to be limited to the first two children, have mixed views about this. I don't want to see children living in poverty without food to eat etc. At the risk of sounding like an old women I also think that there can be a tendency to feel that children need to be given more things as a right than I had as a child, I suspect that there were times when I was a child when we might be classed as living in poverty. I remember one year getting one present from santa and having chicken for christmas dinner. At the same time, having children is a choice. I must admit not being maternally minded, deciding not to have children is an easy choice for me, it won't be for everyone. There is a part of me that feels I shouldn't pay for other peoples lifestyle choice.
Tax credit cuts, my understanding is that these are paid to people in work, so hopefully some of the cut will be made up by the new minimum wage and tax thresehold. It may also mean people can work more. In the past I have worked with collegues who were single parents and I reemember one saying she wanted to work more and set her child a good example but the tax credit system meant that she was better of only working 16 hrs a week.
I know people on benefits can struggle at the momment, a small rise in benefit would be good. The less nice side of me is muttering that my husband hasn't had a pay rise for several years and the only reason I've had one is due to changing jobs. Glad to see that disability benefits aren't included.
Housing benefit, I don't agree with the cuts to housing benefit for young people. It is not always possinle for people to keep living at home, in thier early twenties people may already have jobs in differen locations, be married and have children of their own. They may also be other reasons such as breakdowns in relationships between parents and children that make living togther impossible.
The other part of housing benefit I am in agreement with and have been saying for years that people should not have the right to subsididsed housing for life, regardlesss of changes in circmstances. My husband and I do not qualify for housing bemefit ye someone who is earning more than both of us togther can still get subsidised housing on the basis that they did need it at some point in the past. My only caveat is that I would have liked to see the money raised by it ringfenced for re investement back in social housing.
Those who are disabled but able to work currently get more than the normal job seekers allowance. The chancellor is cutting this. I would rather have seen a more nuaced approach. Some people with disabilites may well need to spend more money in order to do everyday tasks, some may need very little support. Rather than a blanket cut I would rather see a needs based assesment with extra funding decided on the needs of the individual.
Finaly, the benefit cap, in principal this is something I agree with, I am not sure how good a figure £20,000 is, but it is more than a lot of jobs I've seen advertised.
So, overall I think the budget is good for those working and on low and middle incomes. It will hopefully encourage people into work and help people get of benefits and out of poverty. However I am concerned about the effects of some of the benefit cuts, especialy to the under 25's.
from my LiveJournal, Jane Williams - The Wombling World of Madness
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