Tagged: revenue

Tax credit debt collection is a double-edged attack on the poor

Mike Sivier's blog

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There’s more than a little of the piscine about the fact that our Conservative-led has set debt collection agencies onto poor families who have been overpaid tax credit due to errors made by HM Revenue and Customs.

Firstly, the move undermines the principle behind the tax credit system – that it is there to ensure that poorly-paid families may still enjoy a reasonable living standard. Tax credits are paid on an estimate of a person’s – or family’s – income over a tax year and the last Labour government, knowing that small variances could cause problems for Britain’s poorest, set a wide buffer of £25,000 before households had to pay anything back.

By cutting this buffer back to £5,000, the Conservatives have turned this safety net into a trap. Suddenly the tiniest overpayment can push households into a debt spiral, because their low incomes mean it is impossible to pay…

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Inflation drop doesn’t mean wages will rise

Mike Sivier's blog

'For the privileged few': If you're earning the average wage of £26,500 per year, or less, then nothing George Osborne says will be relevant to you. ‘For the privileged few’: If you’re earning the average wage of £26,500 per year, or less, then nothing George Osborne says will be relevant to you.

Why are the mainstream media so keen to make you think falling inflation means your wages will rise?

There is absolutely no indication that this will happen.

If you are lucky, and the drop in inflation (to 1.7 per cent) affects things that make a difference to the pound in your pocket, like fuel prices, groceries and utility bills, then their prices are now outstripping your ability to pay for them at a slightly slower rate. Big deal.

The reports all say that private sector wages are on the way up – but this includes the salaries of fatcat company bosses along with the lowest-paid office cleaners.

FTSE-100 bosses all received more pay by January 8 than average workers earn in a year. Their…

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Why is the DWP being so coy about the Work Programme?

The most successful thing about the Work Programme for me was the fact that they “lost” me and I didn’t hear anything from them for 10 months – almost half of my sentence. 🙂

Mike Sivier's blog

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It’s amazing how the Department for Work and Pensions will bend over backwards to make it seem one of its madcap schemes has been successful.

It’s also amazing how little evidence DWP press officers will provide to support the claim.

Today we’re being told that more than a quarter of a million people have escaped unemployment via the Work Programme. The fiddle? This is an aggregate figure, including all placements – not people – since the scheme was launched in June 2011.

To register as someone who has achieved a lasting job through the programme, one must stay in work for six months or more (three months in “hardest to help” cases). A figure covering 33 months could include the same person five times over.

Never mind. How many people – who are currently in work as a result of time on this scheme – have, in fact…

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Concern as Government looks to ‘privatise’ English Heritage

Parts of the North East’s cultural heritage could be put at risk as the Government seeks to end its responsibility for historic sites.

Ministers are part-way through plans to reform English Heritage and create a charitable arm responsible for the National Heritage Collection.

The Government hopes that an £80m cash injection will mean the quango no longer needs taxpayer support.

But concerns have now emerged that the moves will see properties put at risk as the reformed English Heritage struggles to pay for all its assets.

In the North East, English Heritage is responsible for key tourism attractions such as BelsayHall, Lindisfarne Priory, Warkworth Castle and Dunstanburgh Castle.

As well as those flagship sites there are many others which, while contributing to the overall worth of region’s heritage, do not individually draw in large numbers of visitors.

Culture ministers have been warned of the potential downside of their reforms in a joint response by the region’s 12 local authorities.

The Association of North East Councils has said it wants to ensure the changes do not create a situation in which only the sites which generate the most revenue are protected, instead of the entire collection.

And former regional minister Nick Brown has added to the warnings. He said: “The Government’s proposal has two obvious flaws. The loss of expertise will be damaging in the long run because the advice from a well informed independent authority will no longer be there.

“Secondly, our country’s heritage should not be reduced to a historically themed version of Disneyland. It should be preserved, treasured and valued for present and future generations.”

Urging caution of the unknown costs involved, the Association said: “This is an ambitious plan, with yet another organisation competing for the same sources of commercial and philanthropic funding as similar organisations.”

The councils said: “In the North East there is concern over the protection of historic buildings that may not necessarily generate large amounts of income and instead rely on a subsidy, yet are nonetheless key to the collection and bring in wider economic and social benefits to the local community in terms of tourism.”

The Association added: “Similarly, it is of concern that some sites may require such a level of investment to make them more popular and revenue generating, that the charity may seek to divest itself of responsibility for them. We would not wish to see detriment to any part of the collection solely on the grounds of financial viability and fully expect the new charity to demonstrate that it is the sector lead in conserving the Heritage Collection.”

Already across the North East there are nearly 300 properties on English Heritages At Risk register, properties which for decades have struggled to attract sufficient funding.

Grant Davey, leader of Northumberland County Council said: “There’s a worrying lack of detail in this consultation which compounds the feeling that this is just another attempt by the coalition to scale back the state, this time in the area of heritage.

“Northumberland has a rich and varied tapestry which tell the story of this county over the ages and it is a worry that the Government simply wants to open up English Heritage to the market. The Government needs to make the case for their proposed changes and I’m afraid I’m not convinced.”

Former Newcastle Council leader Lord Beecham, a one-time regional member of English Heritage, said there were concerns that the changes were akin to “privatising out heritage.”

A DCMS spokesman: “The Government’s plans to create a new charity, to be called English Heritage, to manage the National Heritage Collection will not involve disposing of or downgrading any buildings or sites. Quite the opposite, in fact.

“The £80m investment will be used to enhance and improve the Collection, helping to secure its future for generations to come.”

> Of course it’s now generally forgotten that in it’s early days our unelected coalition government made a determined attempt to sell off the nation’s woodland into private hands.

Source – Newcastle Journal  18 Feb 2014