Government plans to eliminate the deficit by 2018 will almost certainly mean further cuts to government spending. The biggest impact on households will be from even further reductions in council spending.
BENEFITS
Plans to cut benefits by 12 billion over the next three years sound bad enough, but only 2 billion of that has been accounted for, leaving the prospect of further drastic measures to make up the shortfall. There is a worrying possibility of means testing of child benefits, which would of course have an effect on millions of households. Questioned several times during the campaign, David Cameron would not be drawn beyond a stock response of ‘child benefits will remain’.
EU migrants can’t claim
benefits for four years
The government has already indicated that they plan to change the rules so that EU migrants can only claim benefits if they have lived and worked in the UK for four years.
Young jobseekers will be
treated differently
There may be an impact on 18-21 year olds, if plans to change Jobseeker’s Allowance and housing benefits for that age group go ahead. The Tories have set out plans to make Brits aged 18 to 21 claim a youth allowance instead of Jobseeker’s Allowance. After six months, you will have to take an apprenticeship, traineeship or do daily community work for your benefits.
Households can claim
£3,000 less
The so-called ‘Bedroom Tax, the most hated policy of the last parliament, will be continued and may even rise. Overall maximum benefits for any household may be reduced from £26,000 to £23,000 per annum. If you’re disabled or sick, you may be able to get an exemption.
REFERENDUM ON
EUROPE
The Prime Minister has promised a referendum on Britain’s EU membership. It would be premature to speculate on the probability of a withdrawal, or indeed the economic impact, as opinions vary widely. It woulda, though, be interesting to see how Scotland, where the Nationalists won all but three of the country’s seats, would react to Westminster trying to take them out of the EU against their wishes. A prompt second referendum on the matter of Scottish independence might well precipitate a break-up of the United Kingdom.
FEWER TO PAY
INCOME TAX
The Tories said that the income tax personal allowance would rise to £12,500, meaning that no tax is paid on earnings below that amount. The threshold is currently at £10,600 and was scheduled to rise to £11,000 next year. The 40 per cent tax threshold was also promised to increase from £42,385 to £50,000
OVERALL PICTURE
Tory policies would not be bad news for everyone of course, but for those already struggling in the wake of the financial crisis, the prospects for the next few years are unlikely to be very rosy, as the government attempts to balance the books. This applies across any boundaries of race, religion or ethnic/geographical origin. There are no distinctions and no one group is making it better or worse for any other. We’re all in it together.