16 February 2010

Tax Benefits

Q In the UK, how do you get £100,000 per annum tax free?

A Through the UK benefits system.

The Express is running a story - FURY AT MUM ON £100,000 A YEAR BENEFITS - about someone who is receiving a massive amount of money from the benefits system.

"Yesterday, outraged politicians called for an overhaul of the system which allows Miss Marjan to legitimately claim £1,600-a-week in housing benefit, adding up to £84,000 a year.

She also receives an estimated £15,000 a year in other payouts, including child benefit. Shadow Work and Pensions Secretary Theresa May said: “We cannot go on with a situation where families on housing benefits live in million-pound mansions.
[Even though they have been in power since 1997]

“We plan to review the whole system to make sure it is fair. Families on benefits should not be able to live in houses that people in work and not on benefits can’t afford.”
"

The last paragraph betrays the cruelty of the system. People who work are hammered by taxes and rarely are able to bring in this amount of money. Older people who need extra care due to illness and/or infirmity are expected to sell their homes to pay for the care. Yet, we have this anomally.

I wonder how the average wage compares to the average income from the benefits system.

I wonder if part of the problem with the benefit system is that benefits such as housing benefits are middle class benefits. They do not enrich people such as Miss Marjan; the money goes straight to the landlord.

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