To wonder on the future of generous welfare in the UK

[happybug1234]

It seems increasingly obvious that many middle-income families are becoming frustrated at how squeezed they are financially, while at the same time seeing people on universal credit receive a growing range of subsidies and support — £1 attraction tickets on days out, a 6% rise in benefits this financial year, childcare costs reclaimable through Universal Credit, housing benefit, and so on. I see thread after thread on this on this site and also increasing momentum in the media on this issue (income cliff edges etc)

In my own extended family, 1 unemployed parent with the other on min wage, in social housing appear to have more holidays and more disposable income than we do, despite us both working full time with a household income of around £95k. Once childcare, mortgage, insurances, commuting and tax are taken into account, we 100% have a lower level of disposable income than they do as they do not have any of these work related costs and their rent is paid. They have recently gone on a 2 week holiday whilst the most we can ever afford is 1 week.

Quite a few teachers in my friendship circle are declining promotion opportunities or TLR because the extra pay often doesn’t feel worth the additional stress once tax, pension contributions and childcare costs are factored in. Instead, some are putting more effort into private tutoring, which is tax free cash in hand.

What is stopping the government from addressing this as people seek to be responding accordingly in their behaviour!

The welfare bill in the UK is over 50% benefits for pensioners including the state pension after the winter fuel backlash I highly doubt any political party will go near that anytime soon.

The UK welfare system is odd and is incredibly inflexible. My sister is on universal credit and is often asked if she would like extra hours at work but it ends up being a net negative if she does.

I think it would have made sense for us to have a benefit system more in line with other European countries and have a contribution based system.

You never end up worse of working more thats not how uc work

Which exactly why the 2 child benefit cap existed and should never have been removed. However, having a SEN child on DLA removes all benefit caps anyway so it's pointless.

Universal credit for a single person unable to work due to disability is dire. The whole thing needs over-hauled and stop encouraging people to have children they can't afford.

Which isn't always true by the time you include travel costs, having to pay (more) council tax, etc

Of course, but it's a safety net many people on LCWRA are self employed due to these reasons, many can't work at all.

But it gives people options that they just wouldn't have without it.

I pay full council tax

100% this. I’m glad I’m well enough to work, pay into a pension, etc, and I’m glad that people who are unemployed/disabled/sick are able to take their children on a day out. My teenage years were spent with 2 registered disabled parents and it was brutal - economically and emotionally - and thankfully the subsidised school food/outings helped immensely.

Vile. Absolutely vile.

DLA only removes the maximum amount you could receive in benefits. You were still subject to the 2 child cap

Yep, council tax support varies by area. Some people on UC pay no CT, some pay a bit, and some have to pay it all.

Yep.

I didn't need benefits until I had a disabled child.

We earn only a bit more than you OP, but feel like we have plenty of money. Several holidays a year, pay around £1000 a month for tutors. Admittedly our mortgage is only about £600 a month. Girls could be expensive but ours love charity shops which saves a lot.
I certainly don't compare myself to people on benefits, it must be a miserable way to live feeling constantly beholden to the taxpayer. I'm glad the safety net is there but hope to not need it.

Being non-disabled is a temporary state, that is huge privilege to stay in for so long.

No it’s not a personal attack - I’m 64 and still working with very few breaks since I was 16 including with young children - I of course pay council tax and VAT and income tax and I pay corporation tax as well - health is just one of the things ref NI and unlike yourself many do have a fair bit of use . NI though is not ringfenced and goes in the general pot , same with state pensions etc - I do appreciate though unfortunately you would be caught on my shiny new policy! On reflection what I would do is change it to 8% ( lower than the rest of us pay)on the amount of income over the standard NI minimum amount of £12570. Obviously this then stops at retirement age . Problem is lots of policies that are actually pretty fair to all do always catch people who will then think it’s unfair .

As a single person with some savings you get zilch after 6 months of jsa. It’s awful no help at all.

We still pay tax on pension and we never got handouts like people do today. Stop blaming pensioners what about the people who claim without no will to work.

FFS, there is no one on benefits who have the same type of disposable income as someone on £95k a year.

I’m on about £10k less than that and have disposable income of around £2k a month. If you can’t manage on £95k and have virtually no disposable income, then your budgeting is pretty crap.

It’s getting very boring on here now having to listen to those in the very top % of earners being so uneducated about people claiming UC. If your facts clearly come via the Daily Mail and Farage and his little pals, I suggest you look elsewhere for your financial education.

My employer (large, private sector) covers every employee regardless of pre existing conditions. It’s fairly standard stuff. 50% of current salary until retirement age if you are deemed too ill to work permanently. I pay to top it up to 80%. Depends on your priorities though.

I agree.
Someone on here came for me and said I had more disposable income than them. They were on £150k. I am on about £9k in benefits.

If they can't afford to live on £150k, then that is their problem, not mine.

Fuck off.

I worked two jobs at 60+ hours a week before COVID ruined my health. I'd absolutely love to be able to work again, and no, £800 a month isn't much when it is your only income and has to pay for everything.

And someone on zero hour contracts.... what insurance are they meant too be getting?
And what SME is going to pay off someone for life if they become unwell?

And how did you manage to train for and gain a job in the private sector when living in poverty and being physically disabled?

I agree.

One of my friends has a similar household income and is buying a 800k house. Never had any inheritance/help from families. They are not struggling for money. We live in an expensive area too. It’s diabolical that some families on high wages are struggling too but it’s certainly not all of the case for everyone on those wages.

I am so sorry - that’s why I’m anti people taking the piss and think we need to come down really hard on it be it fake disabilities, people paying themselves minimum in business and still claiming, people selling up taking money off shore and then pretending they gave nothing, living with other adults couple and not declaring, cash in hand jobs - all of it - the list is bloody endless ! and I don’t care if they are right wing, left wing, young, elderly or in the middle, ) because I genuinely think welfare needs to be there ata good level to help people in your position.