UNDERSTANDING THE FACTS ABOUT THE DAMAGING BENEFIT CAP.

30 September 2013

UNDERSTANDING THE FACTS ABOUT THE DAMAGING BENEFIT CAP.

A few of the comments on Facebook about my article preceding this one about Lord Freud's blog seem not to have understood the facts about the benefit cap.

So here is one of my replies in. Also a letter published in The Independent today.

They both emphasize the punishing treatment of tenants under the present regime.

ONE OF THE COMMENTS ON MY PRECEDING ARTICLE.

"The benefit income, of each family effected by each cap (some are hit by both and the council tax), needed for food, utilities, clothes, transport, and the minimum quantities of other necessities that you would buy, has been reduced by the 1% freeze in increases for three years while prices of necessities escalate, it is now paying of 20% council tax and also paying the rent left unpaid due to the benefit cap.

For example I have been in touch with a single mother with four young children claiming benefits who now has to pay £69 a week rent from her children's benefits because she cannot pay it out of her own of £71.70 a week and survive.

Her options are move out of London, when her family is a London family and provides the support she will need to get into work, or overcrowded temporary accommodation in London. Both options are known to damage the family's health and the children's education.

Rents will increase above the caps forcing more families into rent arrears.

If she lived in a council house where the rents are lower and affordable then she an her four children would not have been hurt by the benefit caps, but the council tax and the 1% freeze would still apply; so would the bedroom tax when the children leave home.

I want my taxes to be used to support families and individuals who have no other means of survival."

Taxpayers Against Poverty.

LETTER IN THE INDEPENDENT

THE CASE FOR LAND VALUE TAX.

The compulsory purchase of land banks proposed by Ed Miliband puts Labour’s housing policy in line with the supporters of land value tax (LVT). We believe that the present taxation system is flawed and unfair. When the value of UK land increases due to increased demand, the owners, including UK and international speculators, have done nothing to increase their personal wealth.

Renters gain nothing while their rents increase. The issue is how to make some of the increase in land value available to all. LVT taxes some of that increase in land value.

It should result in the abolition of the regressive council tax and business rates. It should cover all land, used and unused, so bringing land banks and empty homes into use, making investors look for income from renting, building and creating jobs to cover the tax. HMRC would spend less chasing tax-free money parked in overseas accounts; banks have yet to find a way of moving land into their vaults.

John Lipetz Coalition for Economic Justice
Richard Murphy Tax Research UK
Dr Stephen Battersby Pro-Housing Alliance
Rev Paul Nicolson Taxpayers Against Poverty, London N17


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