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.

The Government's increase in NI has directly increased costs, and therefore, prices which has increased inflation reducing everyone's disposable income. The disposable income of the poorest 20% fell 10% in Q1

Higher inflation, a consequence of the Government's tax on business and employment, means that the Bank of England has not cut base rates as fast as it would otherwise have done, costing those with debt more than they otherwise would. On the plus side, those with savings have benefited :)

The Governments tax on employment has increased unemployment by around 300,000, with 60,000 more young people jobless. I think they'd say they were worse off

The basic rate of Capital Gains Tax was increased by 80% to 18%, and the higher rate by 20% to 24%.

The Government allowed OFGEN to increase the energy price cap 3 times - October 24, January 25 and October 2025. Before they came into power it was £1,568. It's now £1,755 - almost £200 more.

There's a starter for 10 :)

@BigGirlBoxersso that was my feeling, but I don't have the political/fiscal nouse to really challenge it (hence the thread).

Yeah i wouldn't vote tory or reform though. I might send my kids to private school but I'm not a complete bellend.

I stated a fact in response to the OP's question. Some people are unhappy about paying VAT on private school fees.

You responded aggressively and subsequently with a personal attack. I'm not going to report your post because I think it's better to let these things stand.

I'm not going to engage with you further on this thread because the OP has asked us to stop. If you feel my post was goady in any way, please feel free to report to MNHQ.

‘How has Labour made you worse off? Except for you, you don’t count…’

I don’t pay private school fees but those who do have been made worse off by VAT.

Yes, it has affected everybody, all their inflationary policies have been an expensive exercise in keeping the cost of living far too high.

Increase in NI and Nat min wage has meant many business closures/ small business won’t hire / construction trades won’t take on apprentices/ lack of jobs

any increase in tax by 1p or 2p could mean as much as a £100 drop in take home salary for me personally - single parent - ex lost his job via redundancy so no CMS. So much for dealing with cost of living it will be pretty disastrous for me

further delaying rising tax thresholds in line with inflation will mean I’m likely even more worse off

oh and I went to private school - my dad was a bricklayer not rich but I was helped by a bursary. I’m my parents were rich just working class with a dream for their child. 20% increase in fees back then would have meant I couldn’t have gone. Private school isn’t just for the rich. It was an aspiration of a lot of. Or so working class families

100% agree with this. Some people are so pathetic.

It's not an increase is it if prices go up in line with it?

It's just taken away instead. I'm above NMW but with things going up it prevents me leaving poverty, which increases my reliance on benefits. All the while large corporations make record profits year on year.

All raising NMW seems to do is increase people's tax liabilities and their costs, making them worse off?

Yes, established by the last government and continued by the current government. I am not sure if it will ever "even out" - that will depend on whether there is the political will to make that happen. I very much doubt that there is an appetite to do so in the foreseeable future.

Amen.

And that shitty goady emoji? Grow up.

It’s the equivalent of the wealthy saying “lol, poor people got their benefits cut 😉”

YOU make it them vs us, Mrs Bennett.

NI increase on employees affects us all, increases costs that are passed onto consumers including though increases in cost of living. Minimum wage increases does the same (though clearly a benefit to those on minimum wage). It is enough to cause businesses to shut reducing employment etc.

The fifty billion pounds that it will cost to rent the Chagos after giving them away will no longer be able to be spent on public services/will need to be funded from tax.

Failure to stop immigration comes at a cost - £15 billion pa to house them again which must be paid for from money that either needs to be raised/borrowed or cannot be spent on other services. Plus the impact of a load of young single men from misogynistic countries without any checks being placed in communities.

The inability to deal with ‘Gaza’ marchers and their open antiseminitism increasing division in society.

I work for a relatively small company (30 employees) the increase in national insurance meant for the first time in years there was no annual pay rise this year. As prices for everything else has risen but my pay hasn’t then yes I have lost money. I was a loyal Labour voter for many years but not anymore, although there are many other reasons why I wouldn’t vote Labour right now. I also now have the constant fear of losing my job as it would probably be cheaper for my company to use freelancers than pay my regular income.

This is very true. Though I've noticed that they're starting to talk about it more now.

No labour are not anti business they are anti taking the piss which I would say the majority having been doing since March 2020.

70% rise in construction firms in critical financial distress | Construction News https://share.google/nCkTfPpjCCCHsv3dE

I also work for a small company. Brexit has hammered us and now we have the added madness of trumps tariffs. They have had much bigger effect on us than anything the labour government has done.

So the rise in NI is a problem for many and the rise in NMW causes more issues than it solves?

Does any one benefit from either/both?

I don't know what this is?!! What can't we dare to speak about??

🙄

Brexit

This is interesting, in particular the 'sore point' of VAT on private schools as above. Now, not having kids and not being one, I don't care about that issue. In a similar way, my issue was adult social care and the care home racket - paying £1K a week - it would be closer to £2K now - to have your elderly parent held hostage and - not to mince words - be murdered on the quiet by the British State, enforced by the local Council, to save money. (Once the room is free, they move on to the next one.)

Now, I don't expect anyone to care about that if they are not in that situation. But the issue of the elderly gets swept under the carpet whereas the issue of Private schools VAT and the Farmers simply isn't, rightly or wrongly - these issues have touched a nerve in a way adult social care really doesn't. Possibly re the former, a lot of journalists and newspaper editors will be affected by Labour policies so they will let that spill forth. I mean, I personally wasn't affected by Liz Truss's mini budget but many in the media with mortgages would have been.

It does seem what Labour does has legs, any teenager deprived of what they feel might have been a tip top education will carry that grievance against Labour for the rest of their lives, similar to the 11 Plus debacle, however the Tory Govt basically killing off people through euthanasia on the quiet - almost certainly still going on now - well, dead people don't vote do they, it's a dead issue. Save lives, and nobody thanks you, they tend to take it for granted.

Another thing - the Tories operate by throwing sections of the community under a bus via welfare cuts. Labour try to cater for these, but risk tax rises, which gives the general public a collective moan, a sense of solidarity that is rare catnip to a traditionally fragmented society, it's like Christmas, Celebrity Traitors or a World Cup victory. And yes, there seem to be agitators against Labour, they seem succeptible to a kind of bullying, whereas the Tories are the bullies, and folk like to side with bullies often enough, we are a bullying nation.

Aaah! I am an idiot!

I'd like to know what the net benefit is to the treasury relative to the increasing number of unemployed now on out of work benefits as a result of it, that's for sure.