90% of the benefit cuts, that the government has announced
so far, are yet to be implemented. And, because the coalition government’s economic
strategy has failed, David Cameron has announced that an additional £10bn cut
in the welfare budget must be made. The media were briefed that these
additional cuts would be targeted at financial support for people in work.
Already, changes in the rules on eligibility for working tax
credits have had a big impact on families who have been unable to increase
their working hours. From next year, changes in housing benefit and council tax
benefit will hit many low income working families very hard.
Let
me tell you about Janet.
She
left school at 16 and went straight into full-time work. It was low-paid and
the prospects were poor. Later, she started evening-classes, got some
qualifications, but had to move away from home to get a better job, but her
bigger income was swallowed up by rent and travel costs.
When
she was 25, she met Paul. Like her, he’d also got on his bike to find a job.
They saved up and got married 2 years’ later, but found that, despite both
working full-time, they would never be able to buy a home in London and the
high rent meant there was little spare cash.
Paul
was offered a job back home in Sheffield. They jumped at the chance, found a
private flat to rent and, after a couple of months, Janet also got a part-time
job. House prices were increasing rapidly, again out of their reach. They put
their name down on the council’s waiting-list.
Then,
Martin arrived; they hadn’t planned to have a baby then, but they were
delighted. Janet gave up work to look after him. When he was 5, they were
offered a three-bed council house; it wasn’t in the area they wanted, but
they’d make it their home. Janet went back to work part-time. They paid full
rent and council tax. They put all their spare money in to decorating and
furnishing the house just as they wanted; they never borrowed for anything.
And then, when Martin had just started secondary school,
Paul became ill. The cancer was ravenous. He had to stop work and, as he became
more ill, Janet gave up work to look after him. Last year, Paul died. Janet and
Martin were devastated. The funeral costs wiped out their savings. Janet’s mum
gave them a lot of support, travelling 30 miles to stay with them for two
nights each week. They’ve had to make a new life.
Janet has now got a part-time job, but her employer can’t
offer her the extra hours necessary for working tax credit. Financially, they
can keep their head just above water. But, she’s worked out the sums. Next
year, she’ll have to pay more council tax, because of the government’s cut in
council tax benefit. And, now, they’re deemed to be living in a house which is
too big for them; so, her housing benefit will be cut as well. Together, she’ll
be about £20 a week worse off. If she moves to a smaller home – from the one
they’ve carefully made into a home over the last 7 years – she can’t afford to
re-furnish it, and her pensioner mother would have to sleep on the couch.
Janet and 39 other similar Janets will be facing financial
catastrophe and family disruption so that a millionaire can have a £40,000 tax
cut next year. For Janet, these cuts will be the straw that breaks the camel’s
back.
