We saw last week in the Autumn statement that personal tax allowances were increased and this has followed the trend of successive budgets by this coalition government.
They are indeed planning to make work pay by increasing the amount you can earn before you pay tax. Or is it?
Universal Credit is going to shake up the benefits system like nothing else has in the last 50 years.. The plan seems to be the withdrawal of working and child tax credit on the pretext they can claim increased tax allowances and lifting more people out of tax completely.
http://www.telegraph.co.uk/news/politic ... -work.htmlLabour introduced tax credits as a giveaway to big business much as housing benefit is a giveaway to landlords. But I would say more they were a reaction to our manufacturing industry/mid range paid jobs being destroyed.
The jobs that mainly went were in today's money the £23-£28k manufacturing jobs a large part of the working class did.
Rather than face the problem Labour decided to instead introduce tax credits to lift the new low paid jobs up to that level for families.
Of course their other idea was that the city and the financial industry would pay the tax to pay for it.
Removing tax credits wont bring those jobs back,and it wont increase the wages in low paying jobs.
Universal Credit was the best chance for 60 years to reform the welfare state seems it has now missed that chance and is a complete mess.
Much more complicated than what it replaces much less generous for people working full time in national minimum wage jobs. No less generous for people not working and a conditionality regime that borders on lunacy.