Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Politics

Nasty Tory scum again attacking workers rights and the poorest: Benefits for striking low-paid workers to be axed

51 replies

ttosca · 17/06/2012 12:57

Benefits for striking low-paid workers to be axed

Low-paid workers who take strike action will no longer have their wages topped up by the state, ministers say.

Workers on up to £13,000 a year can currently claim working tax credits to top up their income even when they take part in industrial action.

But from next year there will be no increase in benefits if a worker's income drops due to strike action.

The change is part of the new Universal Credit, which is replacing the benefit system with a single payment.

Work and Pensions Secretary Iain Duncan Smith says the fact that the current benefit system compensates workers and tops up their income when they go on strike is "unfair and creates perverse incentives".

"Striking is a choice, and in future benefit claimants will have to pay the price for that choice, as under Universal Credit, we no longer will," said Mr Duncan Smith.

Under the new rules, benefit claimants will be identified as being involved in a trade dispute using information provided by HM Revenue and Customs, the government said.

The amount a household receives in benefits will then be assessed using "pre-strike" level of earnings.

For new claims, any entitlement will be based on usual "non-strike" earnings, said the DWP.

Labour MP Anne Begg, chair of the work and pensions select committee, said: "There are still a lot of questions to be answered about the Universal Credit.

"This is another example of the it not being as generous as the government first made out that it was.

"The gains may actually be less than the gains that previously existed under the tax credit system. "

OP posts:
YoYoYoItsTillyMinto · 01/07/2012 12:36

closing loopholes is great. they have just closed one which will affect me the future.

historically entrpreneurs could start a business run it for years, paying 20%+ corporation tax on each years profits and retaining most of the money in the company.

then they could close the business and pay only 10% personal tax on all the money accumlated.

so effectiving paying 30% on their income. it was designed to encourage startup and help entrepeneurs fund their old age. but it got abused so had to close.

of course its not a very exciting story so hasnt been reported in the news.

if you want to strike fine - DP is in a union, strikes & i support his choices but you are removing yourself from the labour market so not elegable for work related benefits.

New posts on this thread. Refresh page