AIBU to think we need more help with cost of living than a 1% cut to income tax?

[ActualMadness]

lets take a full time minimum wage worker, 9.50x37.5=356.25
357.25x52= 18,525
18,525\12= 1543.75
1543.75\100= £15.43 a month better off.

Most peoples food bill has risen more than this per week and that’s without the extra cost of utilities and petrol. We need some fresh ideas as 1% income tax cut isn’t enough. Other countries have cut fuel duty by over 20% and cap utilities and we are being offered 1% tax cuts.

Raising the personal allowance threshold before you pay tax would be fairer.
Set it at £15k.

Set it to 20k for those in and close to london

A cut in VAT on energy bills would be better I feel. As for fuel duty, I would have a reduction/rebate for hauliers as it benefits everyone and is guaranteed to be passed on. The recent fuel duty cut seems to have been largely a benefit to oil companies.

Get rid of tax altogether and give people the freedom to choose whether to pay for education, health insurance etc.

So if you suddenly become disabled and can't afford health insurance then what? Just wither and die? Or a kid born into a poor family? No school for them. Or if you do one of the very essential but not well paid jobs eg cleaning, care work..you don't deserve any services?

The reduction would be even less than that as you've forgotten about the personal allowance.

They need to help people but effective targeting is difficult.

Increasing the personal allowance is probably good.

A combination of universal and benefit related grants against electricity bills is probably also good.

But any system is likely to have people who benefits when they don't need to and people who fall through the cracks so it would be very hard to make it perfect.

We've just had the rise in the threshold for NI this month.

That suggestion is so ridiculous it can only be facetious.

I agree, everyone earning above the new threshold would be better off by the same amount, a percentage is like a percentage payrise, the highest paid benefit the most rather than those who actually need it.

The reality is that we’re going to be poorer. You can slice and dice any which way but it won’t change that, just direct the pain in one direction or another.

And the illusion that government can somehow fix things but just doesn’t want to is the funniest thing. They all want to get elected so if they could fix it they would and be in office forever. In fact governments have relatively little power on economic matters - they can fiddle around the edges, but that’s it.

When they tell you differently they are lying. Thats why it never gets fixed when they get into office.

so best to stop whining that it’s all the governments fault and why don’t they make thin*s better, and work out what YOU are going to do about it.

I think the Personal Allowance should be equal to the minimum wage for a full working week. I think it works as around 30 hours now but should be more. I don't see why anyone on less than a living wage should be paying tax or national insurance.

Those who have an income below the taxable threshold won't benefit at all from a cut in income tax. Better to cut VAT on energy bills so everyone benefits.

Interesting thought.

I have to admit my friends who moved north seem to be struggling a lot less. However, suppose there is more opportunity in London.

Honestly, I think we're just going to have to ride it out, while making sure there is support for essentials: housing, heating, and food for the lowest incomes.

Any blanket cut in tax or rise in wages comes with the risk of just pushing inflation higher.

Still not ideal as the rich with the biggest homes and who don't worry about bills so have the heating up would benefit the most. I pay £95 a month as I have to keep bills down so I would only save about £15 if it was scrapped completely.

@BarbaraofSeville you are right, it would in fact be a lot less as I forgot about the tax free allowance. I am not sure of what the answer is but although a 1% tax cut is welcome it’s just not enough. I think the tax free allowance being increased to a full time minimum wage is actually a very good idea as everyone would benefit keeping more of what they earn, yes tax revenue would decrease but welfare on universal top ups would decrease and people would be better off.

My friend who doesn't use any heating as he can't afford it would hardly benefit at all from a cut to the VAT.

Which government services don't you want - to fund all this? That might be a good starting point.

I like the idea of raising the PA to £15K.

Cut fuel duty.

Lifting the benefit cap would help a lot of people too.

Lifting the benefit cap would help massively for many many people.

Assuming they can only afford to return a particular amount, then its a case of finding the best way to do it.

I think increasing the tax thresholds is the best alternative to a straightforward tax cut.

I don't think they can afford more, without a countervailing cut, and the usual squeeze on defence can't happen because of the need to buttress NATO against Russian aggression - talk is reversing cuts to defence spending, not raiding it. And I can't think of any other areas of govt activity that are awash with cash to be able to release enough to make any perceptible difference

I read that Australia cut their fuel duty from 44c (25p) to 22c for six months. We got 5p off..

@FilePhoto yes it would but only the unemployed, yes I think they need and deserve help but I think workers need help to. An increase in universal credit allowances would help both the unemployed and low earners so wonder if that’s a better idea? The child element needs raising along with the adult elements to benefit more people. Or a totally different approach rise child benefit by say a £10 a week per child as every on under £60,000 would benefit from that.

@ActualMadness, I'm not sure why the unemployed deserve help. We should help them because it is the right thing to do, and they should seek employment because it is also the right thing to do.

I am much more inclined to help the low paid workers. Increase the minimum wage for example.