The Budget

[Jie Bie]

Not when tax credits are reduced at the same time.

Under 25s without kids don't get working tax credits, and an over 25 without kids who is working full-time on the minimum wage gets £360 a year. Not exactly a kings ransom. Why not just tax them less? Just scrap the working tax credit while at the same time abolishing NI for workers earning less than the income tax threshold (although they'd probably need to take a nominal NI payment of £1 a year to ensure they have a NI contribution record to ensure they qualify for contributions based jobseekers and the state pension).

The problem is that out of the three sources of taxation (consumption, income and wealth) we tax people too much on consumption and income, and not enough on wealth. So we penalise people for earning and spending while the wealthy hoard what they've got. Redistributing wealth across the economy gives it to people who will actually spend it and as a result creates jobs and growth. But I have little faith we will ever see a genuinely redistributive budget from Westminster in our lifetimes.

Edited July 10, 2015 by Jie Bie

[Parklife]

I'll be about £230 a year better off. Magic, can't wait to spend that extra almost £20 a month that quite frankly will change my life not one flipping bit.

Away slightly from the min/living wage and tax credits discussion, I seriously seriously feel bad for any kid leaving school who doesn't have rich parents.

If they are smart enough to go to uni then they'll have the privilege of doing so for masses of debt and can't even get a maintenance grant now. Then when they finish uni and go for a house they'll have to save for a massive deposit for the huge house prices whilst paying over inflated rents and paying off their student debt. Get up, work, maybe eat, pay off debt, never retire, die.

If they aren't smart enough for uni then they can bask in the glow of the increased minimum wage....except they can't cause they're too young to be eligible. So with their likely measly wage they can try and get a council house......except they can't cause council houses are now only for unemployed drug addicted lepers who sell their bodies for a tin of beans. They'll then have to rely on housing benefit to afford to pay private rents.....except they can't cause they're too young. So instead they'll be living at home with their folks unless they had to move to find work, or have a bad relationship with their parents, or they're parents are dead/in jail/mentally ill/abusive in which case they'll have to rely on the support of social services.....except they can't as they're too old. So in this unlikely (actually very flipping likely) situation you'll have either a large number of 18-21 year olds homeless taking refuge from their Victorian era existence with a concoction of crystal meth and heroin ultimately leading to robbery before entering the prison system where at least they'll finally be able to afford a flipping roof over their heads or in the better circumstances they'll shack up with 35 other school leavers in a 2 bedroom flat squalor ridden owned by a slumlord covered in shite.

If I was leaving school now, I'd join the armed forces, not because I want to but because it looks like the best option to receive some training and prospects, get paid, get fed and have some shelter (even if it is a tent in the desert) without having to get into a saddle load of debt.

That's one of the best posts i've ever read on here. Depressingly accurate.

[ParisInAKilt]

I'll be about £230 a year better off. Magic, can't wait to spend that extra almost £20 a month that quite frankly will change my life not one flipping bit.

Away slightly from the min/living wage and tax credits discussion, I seriously seriously feel bad for any kid leaving school who doesn't have rich parents.

If they are smart enough to go to uni then they'll have the privilege of doing so for masses of debt and can't even get a maintenance grant now. Then when they finish uni and go for a house they'll have to save for a massive deposit for the huge house prices whilst paying over inflated rents and paying off their student debt. Get up, work, maybe eat, pay off debt, never retire, die.

If they aren't smart enough for uni then they can bask in the glow of the increased minimum wage....except they can't cause they're too young to be eligible. So with their likely measly wage they can try and get a council house......except they can't cause council houses are now only for unemployed drug addicted lepers who sell their bodies for a tin of beans. They'll then have to rely on housing benefit to afford to pay private rents.....except they can't cause they're too young. So instead they'll be living at home with their folks unless they had to move to find work, or have a bad relationship with their parents, or they're parents are dead/in jail/mentally ill/abusive in which case they'll have to rely on the support of social services.....except they can't as they're too old. So in this unlikely (actually very flipping likely) situation you'll have either a large number of 18-21 year olds homeless taking refuge from their Victorian era existence with a concoction of crystal meth and heroin ultimately leading to robbery before entering the prison system where at least they'll finally be able to afford a flipping roof over their heads or in the better circumstances they'll shack up with 35 other school leavers in a 2 bedroom flat squalor ridden owned by a slumlord covered in shite.

If I was leaving school now, I'd join the armed forces, not because I want to but because it looks like the best option to receive some training and prospects, get paid, get fed and have some shelter (even if it is a tent in the desert) without having to get into a saddle load of debt.

Rather live in the streets than fight for any politician

Otherwise good post.

[MacWalka]

^^^ too true. And you now understand why military spending going to 2pc gdp. Gotta house the cannon fodder some how.

Don't forget once you have a big, expensive, equipped army, you better start a war to justify it. It's a great strategic plan.

Cadet schools in the country are due to increase by a factor of 5 between now and 2020. Are we in a Dr Who (shite show) alternate dimension where the Victorian Era never ended?

Next year's budget will probably include the introduction of work houses to provide room and board to those unable to pay for their own shelter and food banks will be made illegal unless licensed by the government via a new tax and must have their premises within the newly formed work houses. Indentured service will be brought back in for post-grads to pay off their debts and can sign-on with a corporation.

Frankie Boyle was right about one thing - we're 18 months away from all those dystopian future set films.

[Orraloon]

I'll be about £230 a year better off. Magic, can't wait to spend that extra almost £20 a month that quite frankly will change my life not one flipping bit.

Away slightly from the min/living wage and tax credits discussion, I seriously seriously feel bad for any kid leaving school who doesn't have rich parents.

If they are smart enough to go to uni then they'll have the privilege of doing so for masses of debt and can't even get a maintenance grant now. Then when they finish uni and go for a house they'll have to save for a massive deposit for the huge house prices whilst paying over inflated rents and paying off their student debt. Get up, work, maybe eat, pay off debt, never retire, die.

If they aren't smart enough for uni then they can bask in the glow of the increased minimum wage....except they can't cause they're too young to be eligible. So with their likely measly wage they can try and get a council house......except they can't cause council houses are now only for unemployed drug addicted lepers who sell their bodies for a tin of beans. They'll then have to rely on housing benefit to afford to pay private rents.....except they can't cause they're too young. So instead they'll be living at home with their folks unless they had to move to find work, or have a bad relationship with their parents, or they're parents are dead/in jail/mentally ill/abusive in which case they'll have to rely on the support of social services.....except they can't as they're too old. So in this unlikely (actually very flipping likely) situation you'll have either a large number of 18-21 year olds homeless taking refuge from their Victorian era existence with a concoction of crystal meth and heroin ultimately leading to robbery before entering the prison system where at least they'll finally be able to afford a flipping roof over their heads or in the better circumstances they'll shack up with 35 other school leavers in a 2 bedroom flat squalor ridden owned by a slumlord covered in shite.

If I was leaving school now, I'd join the armed forces, not because I want to but because it looks like the best option to receive some training and prospects, get paid, get fed and have some shelter (even if it is a tent in the desert) without having to get into a saddle load of debt.

Happy days.

[Lamia]

I don't get this Living Wage thing when you still can't survive on it without additional support. Am I missing something?

[Guest flumax]

I don't get this Living Wage thing when you still can't survive on it without additional support. Am I missing something?

that's exactly the issue, why charities are saying it needs to be about £12 w/o credits Edited July 11, 2015 by flumax

[Lamia]

that's exactly the issue, why charities are saying it needs to be about £12 w/o credits

But aren't there people on Tax Credits on more than £12 ph!?

Edited July 11, 2015 by Lamia

[Orraloon]

But aren't there people on Tax Credits on more than £12 ph!?

Depends on their circumstances, I think.

[fishcumnock]

I was getting min wage and wtcredit of £50 which made it £325.then the full rent £90,£25petrol

And other bills to pay.don't pay tax only NI on min wage due to threshold change.

So losing wtax credit =£50 less in your pay and as you are under the said tax

threshold you would not pay tax anyway.

[Guest flumax]

http://www.bbc.co.uk/news/uk-politics-33497441

What's the point in labour any more.