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spending review thread

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shawn mach
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chancellor galloping through welfare cuts

sounds like we’re looking at -

- time-limiting of employment and support allowance
- raising of age for single room HB rules from 25 to 35
- ‘alignment’ of DLA mobilty and care components for those in residential care

more detail in rightsnet news later .......

shawn mach
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Vonny
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So all the changes/freezing of WTC is susposed to make work pay? can someone explain this to me

shawn mach
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we’ve just added a couple of ‘other areas of law’ updates to rightsnet’s home page too .... re social housing rents and social care funding ...

Dolge
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One change in the main report not noted:

2.8 In the context of raising the participation age, there will be unit cost reductions in the 16 to 19 participation budget and the
support currently provided by Education Maintenance Allowances will be focused on the most disadvantaged children, saving around £0.5 billion.

Presumably EMA will just be for those on means tested benefits - another cut for people in low waged employment.

Richard Atkinson

chris smith
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Does anyone understand what they propose to do to council tax benefit?

chris smith
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HB Help, Sussex

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You may have noticed that the benefit caps effectively function as caps on housing benefit, with £250 or so being the limit for single people on ESA support but not DLA, which will hit a load of those high rent Learning Disability projects.

The cap for a couple with five children on ESA support but not DLA looks to me like just over £60, and with social housing rents now being 80% of market rents this will be interesting.

It seems to me that a lot of social housing rents will also be vulnerable to rent officer referral,  since they may well be well above the reference rent in some areas.

shawn mach
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other stuff .....

- plans to extend free prescriptions for people with long term conditions are axed

- cabinet office will launch a one year, £100 million fund to help charities, voluntary groups and social enterprises make the transition to a tougher funding environment

- Courts and Tribunals system will be brought together in a single agency (already announced ... see rightsnet news)

- MOJ to launch consultation on proposals to reform the Legal Aid system

Stevegale
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Torbay Disability Information Service, Torbay NHS Care Trust

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Presumably the 12-month limit on contrib. ESA is because everyone gets better after 12 months on planet Atos.

Gareth Morgan
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I’ve just got the first draft of the forecasting model working, including a rough go at Universal Credit.  It now forecasts incomes up to 2016!

I haven’t started to put out examples yet but one test has demonstrated that you do not want to be working 20 hours with lots of kids.

As before, if anybody would like a copy of the results then drop me an email.

Steve_h
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Re “Universal Credit”

Is this a step back in time or am I missing something?

I remember when we had one benefit to cover all, pre income support and JSA etc,

It was called SUPPLEMENTARY BENEFIT.

Ryan Bradshaw
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SHOCKING!

So instead of at least making some genuine attempt to spread the pain they have hammered those in the worst position in society and to compound the problem will reduce legal aid so they cannot be protected from these excessively draconian measures.

Is there going to be any sort of formal response from RN to this. I think it is essential that we make sure the true effect of this on our clients is known.

shawn mach
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past_caring
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Ryan Bradshaw - 21 October 2010 09:35 AM

SHOCKING!

So instead of at least making some genuine attempt to spread the pain they have hammered those in the worst position in society and to compound the problem will reduce legal aid so they cannot be protected from these excessively draconian measures.

Is there going to be any sort of formal response from RN to this. I think it is essential that we make sure the true effect of this on our clients is known.

Just like NuLabour before them, the Tories and the Whigs know the full effects and simply don’t care. Those who are most affected by these measures are also the most marginalised in this society and are, as a consequence, likely to make up the majority of that now significant portion of the UK’s population who are entirely alienated by and disengaged from politics (mainstream or otherwise). They are, in other words, those least likely to vote or protest and can, therefore, safely be ignored.

As for further cuts to the Legal Aid budget - there was a massive upsurge of public protest against that (the unified contract, tendering) the last time, wasn’t there? “Defend solicitors!” ? - not hugely resonant as a rallying cry. For those who have most to lose from any further Legal Aid cuts and therefore the greatest interest in defending it - see my first point.

This country is screwed.

shawn mach
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bbc reporting that around 200,000 claimants could lose ESA as a result of the decision to time-limit the benefit to 12 months

Ryan Bradshaw
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@ Shawn -

I was thinking more of a response from RN itself.  I, personally, would appreciate some tips on here as to how to properly get through to the people in power as I don’t have a clue what to do beyond sending a stinging letter to my local ‘representative’  and I already know the minimal amount of good that does.
I think at this point in time it is important to share knowledge and tactics I have never seen the like of this but I am sure some on here have been active throughout the Thatcher years and could provide some really useful guidance to us young ‘uns.

@ Past Caring

I think that is all the more reason to get stuck in over this nonsense. People have been left defenceless; X-Factor is on the box and Rooney is obviously an awful person so public engagement will probably be at its absolute lowest. I think the politically aware have even more of a duty to act given the gravity of the situation.

shawn mach
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analysis from the institute for fiscal studies @  http://www.ifs.org.uk/projects/346

Surrey Adviser
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“bbc reporting that around 200,000 claimants could lose ESA”

There is a means tested ESA as well as the contributory one.  I’ve been assuming that anyone who runs out of the 12 months CBESA will be able to go on to the IRESA if they still satisfy the ESA conditions & the means test, rather than having to go on to JSA.

But as with so much of this, we don’t have the details.

Anyone know whether I’m being too optimistic?  I wonder how the BBC arrived at their figure.

Gareth Morgan
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But if your partner is working and their income is too high for MTBs then you’ve lost the full amount of the contributory benefit.

Gareth Morgan
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The extension of SMI limits for another year is welcome but has anyone seen anything about the JSA 2 year limit on SMI which starts to hit in January?  I haven’t found anything about it.

PS the impact modelling first version is now ready if anybody wants a copy.

Surrey Adviser
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“But if your partner is working and their income is too high for MTBs then you’ve lost the full amount of the contributory benefit.”

Yes - I wasn’t trying to suggest that everyone would go onto IRESA & clearly some will lose out.  But I’ve heard too much on radio/TV (including the BBC) in the last day or so about this - almost invariably without any qualification at all, & I do wonder whether the BBC understands the situation & has quoted the right figure.  I suspect not!

On another issue, I cannot understand why free TV licences & winter fuel payments are to continue for higher rate taxpayers.  The official reason seems to be to avoid complex means testing.  But is that really necessary?  Inland Revenue know people’s ages & whether they are paying higher rate tax.  Surely it should be quite simple to adjust tax codes to claw back these payments?  A bit of rough justice I know - eg some people may not have a TV - but we’re in a rough justice era with the child benefit cut off anyway.

sophie
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analysis published by the TUC - Spending review will hit the poorest 15 times harder than the rich @ http://www.tuc.org.uk/economy/tuc-18705-f0.cfm

P.E.T.E
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On the question of going onto means-tested ESA after 12 months….

If, after 12 months, non-meanstested ESA stops and the claimant transfers to the means-tested benefits but doesn’t qualify, do they remain on ESA for credits?

If they do, and their condition gets worse to the extent that they now fall into the Supported Element, would they then go back onto non-meanstested rate of ESA?

Robbie Spence
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Government makes welfare cuts of £7billion, having written off Vodafone’s tax bill of £6billion. see top link on Google - http://www.thisismoney.co.uk/news/article.html?in_article_id=514832&in_page_id=2 - 16 Sep 2010

This has not been widely reported, it seems but was reported by Johann Hari in The Independent, 21 Oct 2010: “one of the richest corporations in Britain, Vodafone, had an outstanding tax bill of £6bn written off by the government.”  See http://www.independent.co.uk/opinion/commentators/johann-hari/johann-hari-a-colder-crueller-country-ndash-for-no-gain-2112069.html

Robbie

shawn mach
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press release from the national association of welfare rights advisers (NAWRA) .... see attached

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Gareth Morgan
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Robby - 22 October 2010 04:00 PM

This has not been widely reported

You haven’t read the last few editions of Private Eye!

Gareth Morgan
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I’ve now got a finished paper on the effects of the consolidated Budget and CSR changes together with a look at Universal Credit on the CSJ model.  Email me if you want a copy.

Robbie Spence
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Robby - 22 October 2010 04:00 PM

Government makes welfare cuts of £7billion, having written off Vodafone’s tax bill of £6billion. see top link on Google - http://www.thisismoney.co.uk/news/article.html?in_article_id=514832&in_page_id=2 - 16 Sep 2010

This has not been widely reported, it seems but was reported by Johann Hari in The Independent, 21 Oct 2010: “one of the richest corporations in Britain, Vodafone, had an outstanding tax bill of £6bn written off by the government.”  See http://www.independent.co.uk/opinion/commentators/johann-hari/johann-hari-a-colder-crueller-country-ndash-for-no-gain-2112069.html

Robbie

PS to my last message, just to set the record straight. It seems Vodafone have been let off £1 billion, not £6 billion. The net concession appears to have been about £4.8 billion, still a huge amount, but not £6 billion.  And, due to the complexities of the laws in question, the government would probably never have got £6 billion anyway.  Vodafone had made provision to pay £2.2 billion, which was probably the best estimate (independently audited) of what they could have negotiated, but in fact they will only pay £1.2 billion.  So they have been let off £1 billion, not £6 billion. If you Google “Vodafone tax bill” you will gets reams of stuff, eg: http://www.lawdit.co.uk/reading_room/room/view_article.asp?name=../articles/9107-IXA-Vodafone-tax-liability-for-company-acquisitons.htm
There is this on the Financial Times website, dated July 23 2010, but you need to be a subscriber to read it http://www.ft.com/cms/s/0/2bc71748-9686-11df-9caa-00144feab49a.html - it basically also says Vodafone have been let off £1 billion, not £6 billion.

Sorry for any confusion. Robbie

Madamejones
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Gareth Morgan - 25 October 2010 06:03 PM

I’ve now got a finished paper on the effects of the consolidated Budget and CSR changes together with a look at Universal Credit on the CSJ model.  Email me if you want a copy.

Sorry to be so stupid but cannot find out how to access your profile for email address? I would like this sent to me please…
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Cheers

Chrisnew
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Welfare Rights Advisor New Beginnings Liverpool

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Can I also have a copy please


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BeatriceC
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And me!
Thanks :-)
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