The Tory government is considering lowering the top rate of tax for Britain’s super-rich, it has been reported.
The move would see the top rate of tax being lowered from 45p to 40p in the pound (£), while hammering low-income families with £12bn in welfare cuts.
Former Tory Chancellor, Lord Lawson, has urged George Osborne to reduce the tax burden on top-rate tax payers in the ’emergency budget’ next month (July).
George Osborne has indicated during Treasury meetings that he may go ahead with the plan. It would encourage more businesses to invest in the UK, says Lord Lawson.
A future Tory Government would slash benefits for around 100,000 struggling families and young people to fund more low-paid apprenticeships, Prime Minister David Cameron will pledge on Monday.
Cameron will say that he plans to deliver 3 million more apprenticeships by cutting the benefit cap from £26,000 to £23,000 a year.
The plan would affect 70,000 families in receipt of either in-work or out-of-work benefits and tax credits, saving around £135 million a year. This will include 40,000 households who have so far managed to escape welfare cuts, according to Conservative Party figures released to the Press Association (PA).
Figures released at the end of last year (December 2013) show that for the first time in recorded history more low-paid working households are living on or below the breadline than those who are out-of-work. More cuts to in-work benefits could further exacerbate this issue and cost the Tories votes at the next general election.
The Tories would also remove Housing Benefit entitlement from 18-21 year-olds, affecting 30,000 young people and saving an estimated £120 million a year.
SKY News reports that Mr Cameron has the backing of a number of large firms including Nestle, Airbus, Ford, Balfour Beatty, Fujitsu and the National Grid.
“Because of difficult decisions we will make on welfare, we will deliver three million apprenticeships by 2020. This is a crucial part of our long-term economic plan to secure a better future for Britain.
“It will help give us the skills to compete with the rest of the world. And it will mean more hope, more opportunity, and more security for our young people, helping them get on in life and make something of themselves.
“We have already doubled apprenticeships this Parliament. We will finish the job in the next and end youth unemployment.”
Cameron had previously told the Andrew Marr show:
“All the evidence is the cap is too loose, particularly in some parts of the country, so bringing it down saves money, will mean more families getting into work, and what I want to see – the plan we have for Britain – is to spend less money on welfare and more on helping people into work.”
However, the Tories relentless attack against the young and low-paid has come under criticism from their coalition partners, the Liberal Democrats.
Leader Nick Clegg used his speech at the Liberal Democrats annual conference to attack the Tories for taking an “axe” to the welfare budget, without showing any “regard for the impact on people’s lives”.
His words will anger millions of people affected by welfare cuts his party helped (voted) to introduce – including the cap on benefits.
Currently the minimum wage rate for an apprentice is £2.73 an hour for 16-18 year-olds. The same hourly rate applies to 19 year-olds who are in the first year of their apprenticeship.
Apprentices over the age of 19, or who have completed their first year, are paid at least the national minimum wage for their age group, with some businesses willing to pay more – if you’re lucky.
The national minimum wage rate for 16-18 year-olds currently stands at £3.79 an hour, £1.06 higher than that for apprentices. Those aged 18-20 receive a minimum wage rate of £5.13 an hour, rising to £6.50 for the over 20’s.
Source – Welfare Weekly, 20 Oct 2014
> Part of the Great British history they don’t teach you at school – how the jobless were treated in the 1920s and 30s… and who’d bet against camps returning again ?
During the prolonged unemployment of the 1920s the British government proposed a scheme for transferring labour from the worse effected areas to training schemes in the South of England. For this purpose an Industrial Transference Board was set up in 1928 to monitor and control the transfer of labour form unemployment black-spots. The ITB soon brought to the attention of the Ministry of Labour a ‘class‘ of men not easily fitted into the broader scheme, men deemed ‘soft and temporarily demoralised through prolonged unemployment‘. These men were considered a danger to the morale of the other men and were considered unfit for transfer until they had been ‘hardened’.
The scheme for ‘hardening’ in Labour Camps (on penalty of loss of the dole) was devised by Baldwin’s Tory government, but was carried through with Ramsay MacDonald’s Labour Government and expanded by the 1931 National Government. They were supported by the TUC as well as the Labour Party, and were opposed and exposed only by the National Unemployed Workers Movement, in which the Communist Party was the leading influence.
Between 1929 and 1939 25 secret concentration camps were built in the most remote areas of Britain and more than 200,000 unemployed men were sent to these camps. The Labour Camps were conducted under military discipline and men were interned in the centres for three-month periods, working for up to nine hours a day breaking rocks, building roads and cutting down trees. In August 1939, in preparation for the war against Germany, the Ministry of Labour issued instructions that the managerial records of its own concentration camps should be weeded out, and much of the documentation was destroyed.