Author Topic: Yet another cut in benefits  (Read 3165 times)

superhumandiva

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Yet another cut in benefits
« on: 21 Nov 2011 12:00PM »
I picked up the following from Rightsnet today:

"Government to break the link between benefits uprating and the September CPI
Chancellor to base April uprating instead on a 6 month average figure

18 November, 2011

The government is to break the historic link between benefits uprating and inflation, according to media reports today.

Whist, prior to this year, benefit uprating each April had been linked to the inflation rate in the preceding September as measured by the Retail Prices Index, in its June 2010 Budget, the government announced that, from April 2011, most benefit levels will instead be set by reference to the Consumer Prices Index (CPI).

However the CPI in September 2011 was a record 5.2 per cent which would mean benefit uprating in April 2012 would cost £1.8bn more than previously forecast,

As a result, there are reports today that the Chancellor has decided, ahead of his Autumn Budget Statement due to be made on 29 November 2011, to use a lower inflation figure of 4.5 per cent based on average inflation during the six months to September."

Dic Penderyn

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Re: Yet another cut in benefits
« Reply #1 on: 21 Nov 2011 12:25PM »
I cannot say what I think of these scum bags in the company of decent folk. >steam< >angry< >steam< >angry< :-(
Be careful in what you wish for, God has a sense of humour

Richard_D

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Re: Yet another cut in benefits
« Reply #2 on: 21 Nov 2011 12:43PM »
So the amount of money for what benefit someone is on is going to stay the same regardless of the impact inflation has on the prices of basic food and items?
July 2017- Autism Spectrum Condition.

Sunshine Meadows

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Re: Yet another cut in benefits
« Reply #3 on: 21 Nov 2011 01:07PM »
Dark Divinity,

It sounds like the benfits rise is going to be in line with inflation and not tin line with the actual rise in the cost of living food and heating bills etc. I am no economist but I think interest rates and the supply of money affect the rate of inflation and the government and banks can influence what happens. They have to be careful inflation remains low because it affects the cost of borrowing and this includes business loans and mortages. The the mortgage rates increase by much the housing market is going to take even longer to recover from the crash.

DarthVector

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Re: Yet another cut in benefits
« Reply #4 on: 21 Nov 2011 01:43PM »
I've updated my number-crunching thread with figures for CPI averages based on the 6 months to each September. In essence, they're still cherry-picking, it's still pointless in the long term, and we'd still be looking at a one-off real terms cut that would persist forever.

NeuralgicNeurotic

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Re: Yet another cut in benefits
« Reply #5 on: 21 Nov 2011 08:36PM »
Osborne has now moved the goalposts so often on this, that they're practically in another galaxy >angry<

KizzyKazaer

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Re: Yet another cut in benefits
« Reply #6 on: 21 Nov 2011 08:41PM »
So, will our MPs settle for a below-inflation increase in their salaries?

 >flyingpig< >flyingpig< >flyingpig<

Dic Penderyn

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Re: Yet another cut in benefits
« Reply #7 on: 21 Nov 2011 09:08PM »
Osborne has now moved the goalposts so often on this, that they're practically in another galaxy >angry<

I think the ConDems inhabit a totally different reality to the one the rest of us live in never mind another galaxy.
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Sunshine Meadows

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Re: Yet another cut in benefits
« Reply #8 on: 23 Nov 2011 10:27AM »
This is going to sound flippant, but come next April if the ConDems get their way over Contribution Based ESA, whatever the increase is it wont make a difference because for example 4.5% of 0 is still nothing.

Dic Penderyn

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Re: Yet another cut in benefits
« Reply #9 on: 23 Nov 2011 10:37AM »
And as far as the ConDems are concerned nothing is still more than we deserve.
Be careful in what you wish for, God has a sense of humour