A little adjustment does a lot of harm

You have all heard about the caps.

Sorry, the Caps.

Here is what happens when you factor in the switch to CPI as well.

http://speye.wordpress.com/2012/06/20/the-fundamental-systemic-flaw-in-universal-credit/

Ouch. It always struck me as strange why such a small adjustment made a big saving.

I am slowly learning.

There are a few too many assumptions, particulalrly on rental inflation, for my liking but CPI indexation will have an appalling effect.

See my bit on my blog about benefits values halving in 50 years http://blog.cix.co.uk/gmorgan

ps.  He’s got the bedroom tax completely wrong, it’s not £14 and £25 a week but 14% and 25% off eligible rent.

Consultants eh?  You just can’t trust them