Tory Welfare Reform

[dlohan]

I have been watching Ian Duncan Smith (IDS) on Sky New launching his proposals for the reform of Social Welfare in the UK. More details from BBC NEWS | UK | UK Politics | Benefits plan to 'make work pay'.

He was talking about the challenges posed by the Welfare System that restricted a persons ability to get a job. He gave as an example, where someone taking up a low paid job could pay 90% tax.

Is the Irish System as bad? Does it prevent people from getting back into the workforce? Does it penalise? And is living on Social Welfare all that great anyway?

[pandora]

Is the Irish System as bad? Does it prevent people from getting back into the workforce? Does it penalise? And is living on Social Welfare all that great anyway?

Yes, possibly worse. Yes. Yes. No.

Living on social welfare isn't great and neither is working in low paid employment.

Big problem is that a job pays the same if you are single or married, childless or have 10 kids. Social welfare pays more if you have more dependants. Tax system doesn't address this so there is less incentive for those with families to work.

Other issue here is healthcare. In UK you will continue to have access to free healthcare here you will almost certainly lose your medical card if you get a job. Anybody who needs regular medical care won't take that risk and will stay on welfare.

It's nothing new. It even has a name - the poverty trap - and more and more people are getting caught.

[dlohan]

Pandora,

Thanks for your comments. What would you say is the biggest challenge in trying to get better paid jobs? As you say as we go through life we need to get more pay in accordance with our needs (growing family, etc.).

Regards!

[netron]

the french have been doing something interesting to break this poverty trap - the more kids you have , the less tax you pay. each kid you have results in a chunk of tax not paid.

to such an extent that if you have say five or six kids, you pay ZERO income tax.

its also aimed at creating bigger families and thus prevent France becoming older demographically.

i might be completely wrong on this, but as far as i can recall it was about 2,000 euro per kid. as in 2,000 euro per kid shaved off your tax bill.

[Mr.De-Regulation]

The French solutions is good, because we are running out of European stock. The Tories also have a good policy on welfare receivers have to work for their community to get it. Which essentially will give a lot of new cheap labour. Welfare and public reform in one go, genius.