Its a huge issue in the UK. How to prevent the current downward spiral where young people see no future except being on benefits for their entire life, and where this is the norm.
In 2012 the UK Government spent £209.42 Billion on benefits and administration of those benefits.
We need to break this cycle completely, and radically.
The practical party will change the current system in the following ways:
- Jobseekers Allowance can only be claimed for the same number of years as the individual has been in work. If the individual claimant has never had a full-time job for more than 12 months they are not entitled to any jobseekers allowance.
- Council tax benefits are removed completely.
- Council tax is abolished. A new annual rates system will be implemented at a national level, with all home owners paying a flat standard rate of £500 per year, per dwelling, irrespective of size or quality of the dwelling. The monies collected will then be distributed to a local council implementation team who are solely in charge of organising local facilities provided in the area. They are effectively administrators for the government, and as such will be on a pay-scale consistent with the private sector administrators.
- Personal tax credits are abolished completely. The current PAYE and National Insurance schemes are replaced with a single tax charge of 12% of all income, regardless of the amount of income.
- Housing benefit is abolished completely. The money is invested to build new, affordable housing, where benefits to rent the properties are not required as they will be affordable to someone on minimum wage
- Attendance allowance is completely abolished
- Child benefit will increase by 50% and be payable until a child is 18, not 16
- Rent rebates – abolished. Rents will be reduced in line with new affordable housing being created, thus this will no longer be needed.
- HM Revenue and Customs will be run as a separate company, it will have an annual budget of £1 billion to run all of its operations
- Child trust funds will be abolished.
- Carers allowance will be revised to ensure that there are not fraudulent claims. Carers allowance does not apply to caring for someone who is clinically obese, this does not count as requiring care, it means the person needs a reduced-calorie diet.
- Disability living allowance, capped at the same amount as minimum wage for a 37.5 hour working week. If there are living relatives then receipt of this living allowance will not be eligible. Person must live with relatives, who can claim carers allowance.
- Employment and support allowance is abolished. Employers National Insurance payments are decreased to 4% per employee per month.
- Department for Work and Pensions Admin is cut to £2 billion per year, with a 5 year plan to decrease this to £1 billion.
- No individual is entitled to any benefit unless they are a UK citizen. Citizenship will be implemented in an identical way to the current Australian system.
Annual spending is almost halved under these proposals with a total expenditure of 129.26 billion. These reforms will also have the side-effect of meaning an increase of money in real-terms for individual citizens.