Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Housing Benefit Illustrates Britains Disgraceful Wasteful, Benefits Culture

Politics / UK Tax & Budget Jun 23, 2010 - 06:31 PM GMT

By: Nadeem_Walayat

Politics

The Coalition government's measures to cut spending on Britians huge £110 billion benefits bill by £11 billion per year by 2014-15 is being met with much outrage and indignation by vested interests. However it is ordinary tax payers who should feel the real indignation when they find out that people are able to claim upto £1,000 per week, that's £52,000 per year in housing benefits alone, which is more than twice the average salary.


The coalition government's intention is to lower the cap on housing benefit from £1000 per week to £400 per week which would still amount to £20,800 per year for this just one benefit, it is no wonder that as many as 3 million people of the 8 million that are economically inactive choose not to work as in a many cases they are able to receive far more in benefits than average earnings.

Today, Channel 4 News presented the case of a single parent who chose to live in Islington (London), who was in receipt of housing benefit of £583 per week towards a rent of £690 per week. The sob story was that the single parent family could not afford to live in the £690 per week house in Islington if housing benefit were capped at £400 per week. Well over 90% of hard working tax payers who are NOT in receipt of housing benefit also cannot afford to live in a £690 per week rental property. Clearly the answer is to either move to a property within the persons means or seek to gain employment that is better able to afford a rent of £35,580 per year, the answer is NOT for the state to step in a provide a huge £30,316 in housing benefits alone which is MORE than most peoples total annual earnings.

Many people reading this on salaries of as high as £50k per year may be shocked to find out that there are also many benefit claimers out there that net far more than them without ever having done a single days work.

Labours Benefits Culture Legacy

Under Labour the benefits culture has gone completely out of control where people are rewarded for NOT working. The benefits culture where the aim exists to maximise benefits received by permanently non working parents by means of increased number of children who themselves will go on to perpetuate the self same behaviour of their parents and grand parents has dire implications for Britains future as the money for nothing generational benefits class that has no inclination for work has continued to grow far beyond the rate of the working and middle classes, therefore has lead towards an escalating unproductive tax on the UK economy. As the number of children born into the working and middle class averages less than 2, whilst the number born into the benefits class numbers more than 4, which given the fact that there is little incentive to educate will eventually lead to the dumbing down of society and a drain on future productivity.

Despite 10 Years of debt fuelled Economic Boom into the End of 2007 the Benefits Class had continued to grow relentless and now totals more than 8 million of those of working age against the working population of 28 million.

The coalition government's planned £11 billion (10%) cut in annual benefit payments is on the right track of trying to socially re-engineer the country in favour of work rather than the culture that seeks to maximise the amount of benefits that can be claimed at the expense of ANY productive activity.

Comments and Source: http://www.marketoracle.co.uk/Article20561.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-10 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 500 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

raj
24 Jun 10, 14:02
house prices

Hi Nadeem,

Will you be carrying out the in depth house price forecast soon, with a graph for the next few years

Thanks


Nadeem_Walayat
24 Jun 10, 17:42
uk house prices

Hi

I need to first digest the implications of the budget that hit the reset key on the economy

Best.


Tony Allen
10 Aug 10, 07:30
Housing benefit

The group who appear to be in receipt of the majority of state benefits are landlords. Whatever happened to fair rents? Landlords demand the most rent that they can squeeze out of their tenants.


Nadeem_Walayat
10 Aug 10, 11:05
inept councils

Inept councils have forced rents higher because they do not care that it is others people money that they are spending.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in