Can someone explain to me why/how the Labour government has directly made them worse off in the last 15 months?

[MotherofAdults]

Can someone explain to me why/how the Labour government has directly made them worse off in the last 15 months? I see this claim a lot on these pages, but I don't understand why. Sorry if I sound stupid, I am just trying to get clear.

I totally understand that the cost of living keeps going up - that inflation keeps rising (3.5-3.8%?) and that mortgage interest remains relatively high, but I don't understand why or how this is the fault of the current government? What have/haven't they done? Are people angry that they haven't curbed inflation? What should they be doing?

If we could avoid mentioning the things that didn't actually happen (eg the Winter Fuel Allowence cuts) and speculation about what the next budget will do (doubling of council tax, rise in minimum wage etc), that would be really helpful. I am looking for actual changes made by this that have directly affected your financial situation since Labour got it.

Interested in this too

Some of them are just unhappy about having to pay VAT on private school fees.

The increase in NI and minimum wage have massively affected business owners. My family are impacted by this.

The anti-business approach by the government (the above plus generally not cutting costs so the UK economy outlook is getting worse) is affecting my job. I'm private sector, and expecting redundancy in the new year because companies are not seeing growth so are not investing in new things.

Plus holding all tax thresholds whilst inflation is highish means they are taking relatively more of my wages all the time.

Oh nooooo don't set them off! I am looking for clarity not a bun fight!

I can see the point re NI but don’t understand the tax threshold comment as this was actually set by the previous government?

@Rollercoaster1920 - thank you, I was just trying to get my head round that.

As I understand it this is a tricky balance though - if wages go up this helps people to counter the rise in cost of living right? But if business can't afford it people lose their jobs anyway?

Personally I am no worse off.
I'm actually happier to have a Government thin the main has the same values as I do.
People have short memories about how the Tories run the country - which will be considerably worse if people vote for Reform.

Can someone explain "tax thresholds"? Do you mean 20% lower 40% higher on income tax?

Also if they were set by previous gov, what should current government have done/do?

Prices have increased due to the hike in NI/min wage. I do feel the pinch. I work in the civil service and recruitment freezes have stifled my earning potential but at least it is a secure job.

Btw, I support the increase in min wage, in principle but am deeply concerned about wage compression. That’s a different thread topic though!

I don’t have to pay school fees, and couldn’t afford to anyway. But smiling at someone else’s misfortune is shitty.

Crab bucket mentality.

I can see why PP is pissed. Today is going to be a real shitter potentially.

@MotherofAdults my DH lost his job as result of NI increase.
At the same time we were hit with the tax on education.

So yeh thanks a lot worse off.

@twistyizzy@MrsBennetsPoorNervesAreBackplease stop! I am sure you are lovely people in person, but this isn't useful. I know I can't moderate you, but I am trying to undertand something here.

The issue is fiscal drag. People are paying more tax overall because the thresholds haven't risen in line with wages. This approach was used by the Tories to increase the tax take, and Labour has carried on using it. It's a stealth way of increasing income tax, essentially.

We’re no worse off.

DS1 is in the armed forces and had the best pay rise, deservedly, he’s ever had when the new Govt came in.

It wasn't me making fun of other people being impacted by Labour

It's vat on school fees for me. Hopefully one day we will rejoin the EU and the vat will have to be removed.

In the meantime Tories and Reform have both pledged repeatedly to repeal it and there are talks with Lib Dems.

@MrsBennetsPoorNervesAreBack so we wait for it to even out? Also that means this was established by last government, but hasn't beed addressed by current one?

Sorry for all the questions

I don't think the Labour govt has made us worse off at all. I think that there are just lots and lots of right-wing agitators starting threads that parody the govt and its policies. Plenty of them believe what they are saying, because they are just second- or third-tier agitators who have been stirred to action by the misinformation and talking-points seeded into social media by the first-tier agitators.

But don't make the mistake of thinking that politics threads on MN are the kind of authentic, organic discussions that they used to be a decade ago. They are profoundly skewed, just a performance of tribalism, fevered parodies of discussion.

I think for sure that Labour has failed to take actions to tackle the emergencies in UK politics; but it is laughable to see the crude and fanciful insults thrown out about them in MN. These will be supercharged as soon as details of the budget come out. Don't fall for it.

I lost the WFA last year. I'll get it this year, thank goodness. I haven't put my heating on for more than 15 months.

RE: Tax thresholds. Yes the point at which money earned over that threshold is taxed at a greater amount.. Details and some history are here: https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past

The last Conservative government held them steady for years. Largely we had low general inflation. When Liss Truss' government caused inflation to raise massively conservatives didn't raise them. Labour have had the opportunity to increase in line with inflation. They haven't.

I'm not partisan when it comes to politics. I see good and bad from both sides.

Oh - I'm also very worried about the cost of university education. It's the big expense a few years away for our family and the increases in fees will make us worse off than before.

I think the main thing damaging the economy and people's pockets dare not speak its name because leave voters will throw a tantrum.