Last night I watched a very interesting discussion on the UK benefits system with some of my favourite bloggers, plus a couple I had not met before. They were:
Nicky from IAmTypeCast.com
Lynn from SaltandCaramel.com
Jax from LiveOtherwise.co.uk
Chrissie from MediocreMum.com
Ruth from LemonadeLife.co.uk
All had differing takes on the UK Benefit system and came up with some very valid points, some which changed my views, but I still feel some things were missed.
Now, I am no politician and neither would I want to be, but there is something badly wrong with the benefits system when many on it are far better off not working, than they would be if working.
This is a lot to do with a huge discrepancy in the minimum wage and I would love to see Tax Credits abolished as they are confusing, often wrong and completely skew wages. The government would be far better off helping small companies pay a higher wage to their staff – see the post from Jax linked above.
In my opinion, benefits should only be there to help people in the short term and not become a way of life – in cases of illness, job losses etc.
Part of the issue for me, is that some people seem to expect a decent living, without having to work for it. We are now living in a material age where people expect to have nice things – a mobile phone, flat screen TV, car, roof over their head etc, a lot of which is bought on credit – another problem entirely!
I have always worked, but have had periods where my wages have been topped up by benefits and I received Housing Benefit for a time. It was a lifeline to me and I admit it was tough to climb out of. Seeing your hard earned wages disappear on rent and childcare when you have had help before can be a hard pill to swallow.
I would love to see money management and budgeting taught in schools to help the next generation stay clear of debt and help understand the value of money.
I do agree that the media have given us a really skewed view of the system, focusing on the small minority that milk it for all it is worth, but by the same token I see things in everyday life that really annoy me. I live in an ex-authority house and there are many people in the same area that still rent from the council and don’t work.
These people often gloat of going abroad on holiday, new cars, the latest gadget, when we are struggling. We have had to cut back and cut back some more over the last few years – going down to one car, cutting our TV package, being strict with our food budget etc. I will never forget my older two moaning that we couldn’t afford to buy them a laptop, when all their friends at school who’s parents “didn’t work” seemed to be able to afford them!
I am often made to feel guilty that we own our own house too. We worked damn hard for it, are still struggling to do it up 8 years on and are stuck firmly on the bottom rung of the housing ladder, but it is ours! We don’t get help if the boiler breaks down, the bathroom leaks or we have a case of mould like you would if you rented. I never appreciated how much a house would cost in maintenance and I feel that is part of the reason that rents are so high too.
So what would I like to see happen?
A higher living wage that starts at 18, not 21!
More affordable housing, and a fairer system. I know many couples who live in large local authority homes whose kids have left, yet there are people in hostels or tiny flats crying out for a decent home!
Job Centres that actually help people on benefits getting the training they need to go into the job market and give valid work experience. I have always worked as it keeps my mind active and in the most part it is enjoyable (and gave me a break from the kids)! If people are physically and mentally able there should be no excuse not to work, unless they are caring for the disabled or very young!
A fair system – not one rule for one and one for another.
Improved subsidised childcare.
What do you think?
I’ve been a homeowner, a worker, a tenant and in receipt of benefit, so have experienced all aspects of your post, albeit always at the lower end of the scale (never been a millionaire). The problem as I see it is that the cost of living in our very material world is too high for workers who are earning at the bottom. Wages for everyday (although very necessary) jobs are too low in comparison to living expenses, especially where we live as housing costs are high. That’s the next thing, affordable housing. There is none. Buy or rent, its expensive. Utilities – the cost of keeping warm and clean is ever increasing.
Yes, there are things we can all cut down on, as you say, minimal TV package. However, society also expects us to “have” certain things, and our children are pressured when they reach school age.
The new Universal Credit is apparently to be accessed by claimants online. So, I guess that means broadband connection and a computer are now considered a necessity?
Urgh, I could waffle on and pick holes in so many of our governments great ideas, but it will always come down to Peter robbing Paul and vice versa.
Most of us normal folk have it hard these days in one way or another. I wish the government would really put their efforts into stopping the false claimants, helping the less well off when they work for it…no matter if they own a home or not, and to stop feeling they owe something to the very rich.
My brother earns a really good wage, do I think he deserves so much more money than I earnt when I worked full time for the local council in my admin job? No. I still put the hours in, I still worked very hard. But the huge gap will always be there.
xxx
I agree there is a huge disparity in wages, but how do you police it – especially across industries.
It is good to see them building affordable housing locally, but that takes time too.
No government has got it right so far – maybe mums should run the country – they budget much better!!
Childcare costs need to come down. We live on a VERY tight budget, no real luxuries, our car is not a posh one etc. I am at home with our children, and the work I now do, I take my son with me, because to be honest, when I worked, as a nursen I made no money, it all went on childcare. If I work 3 days a week as a nurse, my salary is swallowed by a childminder, breakfast club and afterschool club costs, not to mention holiday care for when my older one isn’t at school. In other countries, childcare is heavily subsidised, so mum’s can work if they want or need to, and actually make a living.
Also, housing costs need to come down. Where we live, 3 bedroom, former council houses, are on the market for 450,000 or £1800/month rent. No one can afford to rent or even buy, and they aren’t worth that money. The gov needs to clamp down on the rent and housing market and bring it back to reality. We only afford it because we rent from friends, who charge us a reasonable rent, not market value.
I agree that childcare costs need to come down – but how do we pay for that. In other European countries they pay double our tax for the pleasure of better subsidised childcare, so it is still going to affect our wages. As a childminder myself, there is no way I can charge less than I do already, it is substantially below minimum wage and the amount of work it actually entails you would not believe!!
Now wondering where you live as that is an extortionate housing cost!!
I know there are those that milk the system and they do need to be punished and dealt with but they are in a minority; benefit fraud accounts for less than 1% of our deficit.
The most major thing that would help is an actual living wage. Yes, I understand it would cost small businesses but it would also generate much more income into the Treasury (I think it was Jax last night who said that?).
I actually don’t think Childcare is too expensive when you think of what is involved (we became very close to our Childminder and she told us the sheer amount of work involved), it’s just unaffordable due to the low wages and high cost of living we have here.
As you know, I am sick, cannot work and cannot care for my son for any length of time alone so neither myself nor husband can work. We struggle every SINGLE week, despite getting our room in a hostel paid for, the council tax covered. We get £100-odd a week in ESA, £10 in Child Tax Credits and £20 in CB. When you live in a hostel you cover service charge yourself (about £20 here) which yes covers everything except for TV license but food is expensive, especially when we have very little storage, we HAVE to get taxis sometimes due to my inability to walk. Why people think I live the life of riley or are after a pity party I have no idea. I am GRATEFUL for everything we get. Long may it be temporary though because my god does your pride take a battering!
I agree to an extent but I’m self-employed as is my husband and we work 16 hour days, 365 days a year. We earn a pittance. If we didn’t get tax credits we would be living in a cardboard box, simple as that. There needs to be a massive reform but it isn’t being done fairly and that’s what is causing the problem right now. It’s okay telling employers to increase wages but as self employed farmers, we can’t even afford to pay ourselves nevermind employees!
CJ x
I agree with you to a point – I am self employed and yet get much less than the minimum wage, yet get slated for charging too much!
I am not sure how the self employed would get round it, but if companies paid a fair wage in the first place, there would be no need for tax credits……argh, why is it so complicated?