The Welfare State We're In
Comments on:
How the welfare state taxes the poor

As you say the mainstream media sadly want to ignore this kind of 'welfare' story (otherwise I'd be writing it for them and not on benefits!) However it is being looked at in the blogosphere. There's a fair few disabled bloggers who regularly write about these kind of issues. There's also the BBC's Ouch site which has a section of disability related news, usually including things on the welfare state, although it's not as updated or comprehensive as it should be.
For bloggers mine's probably the one most aimed at benefits, but I'd also recommend http://takingiteasywatchingjeremykyle.blogspot.com/
who writes about life with a serious brain injury and his experiences of the various New Deal programmes and Batsgirl at http://batsgirl.blogspot.com/ who has ME and works part time. Hope you find them useful and look forward to seeing your views, Bendy Girl

Posted by Bendy Girl at July 11, 2009 11:56 AM

Not only is there a high marginal tax rate for Pension Credit, but if you have any savings over £6000 (it may be a little more now - this is the 2008/09 figure) they deduct £1 per week for every £500 (or part). If anyone can tell me where you can get a guaranteed income of 10% (which is what £1/week for £500 amounts to) without risking your capital I be pleased to hear about it.
This kind of punitive deduction does not encourage people on low incomes to make any kind of saving at all.

Posted by John Harrison at July 13, 2009 10:21 AM

There is a huge difference between the savings limit for pension credit and the savings limit for tax credits. The difference is that there is no maximum limit of savings for tax credits as it is based on the income produced by the savings, ie interest. As interest rates are relatively low,savings in excess of £100,000 will not greatly affect tax credits received. This rule of unintended consequences means pensioners are severely punished for prudence but those in receipt of a lump sum (compensation, lottery, legacy etc)still receive potentially large tax credits and other allied benefits such as maximum EMA payments to their children.

Posted by Jimmy Mac at July 30, 2009 11:56 PM

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