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.

No, I could have sent my dc to private school but I didn't think it was necessary. No jealousy and no regrets. She did brilliantly in her state comprehensive.

I have said many times that I don't judge parents for making different choices for their dc. We all do what we believe to be in our children's best interests, and I have every respect for those who prioritise their children's education in whatever way they deem fit. However, I have limited patience for those who seem unable to acknowledge their own privilege

When Labour were in opposition and the Torys did this Labour were screaming abuse and accusing Torys of making people poorer. Now they are doing the exact same thing.

“That lifestyle was always a choice though. If it’s taken the Labour government implementing some policies you don’t like to make you realise there’s more to life than work that’s quite sad.”

@BarbarasRhabarberba - pretty sure it was Brown and Blair that drove that lifestyle in the first place when we were students.

Also pretty sure most of those my age where expecting a more Blairite Government from Labour and for Starmer to be able to control his own dogs.

I'm not going to wade through 5 pages of posts to find it.

When there's a tax rise in the budget I will be worse off. Unfortunately DP has just lost his job so I'm getting a little bit panicky. I think the rise in employers NI probably dampened growth which doesn't impact me directly but I guess if you look through a wider lense we need growth not the opposite. I see a lot of people not being replaced in jobs when they leave which results in a bigger workload for others. That's not a financial impact but arguably does impact in terms of your job load being more. Increases in all utilities and food prices has been going on for ages but it doesn't seem to be slowing down. Little chipping away at disposable income does make people feel worse off. I have meandered an answer to your question but that's because it's an interesting question OP.

Here, I'll post it for you again then. Save you the heavy task of swiping your finger and reading.

NI increases impacting jobs particularly at the lower end. Young people in general and graduates finding it really difficult to get entry jobs.

We are in the middle of retirement. Planning is a nightmare. No idea what we will have/ not have, be able or not be able to do, both short and long term. Planning for inheritance for the girls also really difficult.

“No, I could have sent my dc to private school but I didn't think it was necessary. No jealousy and no regrets. She did brilliantly in her state comprehensive.
I have said many times that I don't judge parents for making different choices for their dc. We all do what we believe to be in our children's best interests, and I have every respect for those who prioritise their children's education in whatever way they deem fit. However, I have limited patience for those who seem unable to acknowledge their own privilege”

@MrsBennetsPoorNervesAreBack - I also do not have to pay VAT and my DC are getting an excellent free state education, but surely that is the biggest privilege of them all! Not paying and getting a good deal. So I feel sorry for those trapped by Labour’s ideological warfare, especially if their DC have SEND.
If we had to move our kids out of the state schools they are happy in because of direct government interference, we would be really upset too, on behalf of the DC. Especially if we were already saving the state 8k a year.
So I think it is you who should be grateful. Not those who were ambushed.

I’m now paying road tax on a very low emission car for the first time in 11 years.

Fuel bills? What a joke. Like others mine are rising and include, I’ve read, an extra £52 pa to cover others who haven’t paid then I have to wait till January to see IF I qualify for WFA. (I do but hey, make me wait Rachel.)

Payment for a Covid jab. £98 in Boots. If you’re under 75 and can’t afford it, tough. How many hospital beds will be filled needlessly?

Any savings are being chased for extra tax by this government but weren’t previously. Those who’ve been frugal, prudent and saved are worse off. Jealousy tax.

I don’t and never have paid fees for private education but I defend the right of those who do. Having levied VAT from them, is this government going to give them a rebate for the amount they pay toward state education?

Ms Reeves? Not a fan. Every time she speaks of the black hole the amount goes up and she blames Tories or those who voted for Brexit.
Can she not see her policies aren’t working, like the labour force who are being made redundant because of increased NI contributions and employment conditions?

Well that’s a handy graph blowing out the pp post. People are quick to do Labour’s lines. Who did Reeve’s blame this time?

£70bn tax raid and borrowing hike last time and around the same again soon bar the borrowing as they’ve maxed that.

Labour's manifesto is, "fully funded and fully costed - no ifs, no ands, no buts… no additional tax rises."
"I have been very clear that every policy we announce, and every line in our manifesto, will be fully costed and fully funded."
“Nothing in our plans requires any additional tax to be increased.”

Reeves and Starmer don’t know how to fix the last budget issues. It’ll be more taxes each year.

Why are you pulling quotes from another thread?

@SoapwortInFlowerInNovemberWhatNext

Badenoch has said she will reverse the windfall tax on energy companies. Do you agree with that?

It most certainly won't bring high energy prices down.

VAT on private school fees (my daughter was in her GCSE years so I couldn't move her) has massively affected me.

What a reply. Honestly Labour don’t do themselves any favours. Have you see how many loathe Labour already?

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

THIS. It has led to higher than expected inflation and is a key contributor to deteriorating OBR forecast. Food prices and service prices are increasing, interest rates are not dropping as quickly as expected and my mortgage rate renewal was higher than it could have been. Oh and my employer can’t afford he wage rises we’ve seen in previous years because of the NI rates, so it’s us that are effectively paying the increase….

Now labour want more from my pay slip (in all likelihood!).

I don't think VAT is chargeable if a specific private school is named in a child's ECHP? And yes, yes, I do know how hard it is to get an ECHP, but the kind of parents who can fork out for private school fees would also be able afford to pay for professional advice to help them get that ECHP in the first place, should their children's needs warrant it.

It isn't a level playing field, and the SEND children with engaged, supportive and wealthy parents who will bend over backwards to support them are not the ones that I'm most worried about.

Many of the people you are sneering at have proritised work over life are pay the most tax.

Are you saying the minimum wage is too high and that your family should pay employees less and the government should make up the shortfall with Universal Credit?

My DD2 had a rise in University fees three times that of her older sister after 2010. It massively affected our household income.

@Upstartled , was there any need for the arsy comment? It shows inflation not how the economy is doing.

?

I am neither a Labour Party member nor a Labour Party representative. Indeed, I have criticised some of the Labour government's decisions on this thread. So I'm not sure what point you're trying to make?

This is a good answer for the op.

@MotherofAdults

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

How?

This government’s changes to NIC, business rates and the national living wage were huge. It’s had a massive effect on businesses, especially small ones. In order to remain profitable they’ve had to either increase prices (which affects all of us), or reduce costs (by reducing quality or cutting costs, sometimes by making staff redundant).

The VAT on school fees has had a bigger effect than many realise. Schools are often cutting costs by making staff redundant and reducing bursaries for the less well off. For those parents who couldn’t afford to pre pay fees and avoid the VAT, they’ve cut back on spending, often affecting the local economy which is already struggling. They’ve cut back on things like eating out, takeaways, cars, clothes, coffee shops, weekends away etc. It’s no massive hardship to cut back on things like that, but it does affect local businesses who often had custom from those with more disposable income. That disposable income has either disappeared or has been massively reduced.

The uncertainty created ahead of the budget has been awful, created by the government themselves. Businesses are cautious, often freezing recruitment. Households are cutting back, fearful of what lies ahead. The housing market has ground to a halt because of uncertainty.

Anyone at university or with children at university will be worse off. Tuition fees are increasing after being frozen since 2017. Instead of increasing university funding through government spending increases, they are passing on the cost to the student.

Why?

Because Labour governments always think that taxing the better off and spending/borrowing is the answer. Also because, like the previous poster using a smug emoji, they can’t bear the thought of anyone doing well for themselves. They don’t value success and see tax as a way of punishing people, wailing “it’s not fair”. They want to achieve equality by dragging everyone down to the same level rather than improving standards from the bottom up.

Like those who have benefitted from a good local state school?