Who's have thunk it? UC recipient bank account access trail
Discussion
ATG said:
What do you think happens to fraudulent benefits claims? They get spent in the economy very rapidly.
Usually yes. In this case the fraudsters are spending their benefits rather than spending from their £50j savings. So they aren't necessarily spending any more. Just choosing to steal from the taxpayer bro spend rather than using their own money.Leptons said:
Super Sonic said:
Benefit fraud is £6.4bn a year - https://www.gov.uk/government/statistics/fraud-and...
Tax not paid by small businesses when it should be is £20bn a year - https://www.gov.uk/government/statistics/measuring...
Really though, how much deeper does it run? Because from what I’ve seen once you’re in that benefits system you’re entitled to;Tax not paid by small businesses when it should be is £20bn a year - https://www.gov.uk/government/statistics/measuring...
Free prescriptions
Free School meals
Free School trips
Free Dentist
Free school Bus Passes
And so on
So you’re tell me that’s not more damaging than some company only paying for arguments sake £20k tax when they should be paying £25k?
BikeBikeBIke said:
valiant said:
What’s the difference between playing the benefits system and playing the tax system?
That if you clamp down on benefits fraud productivity is encouraged, if you clamp down on tax fraud productivity is discouraged.tax fraud means that those who do pay tax - honest and competent individuals and business have to pay higher rates.
that harms their productivity.
it also means that tax take is reduced, which means less investment available for infrastructure like roads, other transport, the legal system (on it's knees), the NHS (healthy people are more productive), education (educated people are more productive), etc. etc.
so it's deeply facile to say that tax fraud enables productivity, when in fact it diminishes investment in infrastructure and support systems that are deeply enabling or even prerequisites for a productive economy.
PlywoodPascal said:
BikeBikeBIke said:
valiant said:
What’s the difference between playing the benefits system and playing the tax system?
That if you clamp down on benefits fraud productivity is encouraged, if you clamp down on tax fraud productivity is discouraged.tax fraud means that those who do pay tax - honest and competent individuals and business have to pay higher rates.
that harms their productivity.
it also means that tax take is reduced, which means less investment available for infrastructure like roads, other transport, the legal system (on it's knees), the NHS (healthy people are more productive), education (educated people are more productive), etc. etc.
so it's deeply facile to say that tax fraud enables productivity, when in fact it diminishes investment in infrastructure and support systems that are deeply enabling or even prerequisites for a productive economy.
matrignano said:
£16k is fk all, especially if you're someone who's worked hard/a long time, managed to buy a home with a mortgage and are therefore not eligible to have your housing paid for you.
Particularly in London where mortgages and living costs are high, it would be quite easy to burn through £16k in less than 6 months. All this for a meager £380 a month UC payment which, let's be honest, doesn't really make a dent.
I am in this situation now and I am quite peeved off that I have paid hundreds of thousands in tax and the best I can get is £380 a month.
Other European countries pay a decent proportion of your last salary for up to 12 months, which is much fairer as you get back a fairer chunk of what you have paid in through the years.
Agreed entirely. It is £6k for UC by the way; £16k is only for pensioners.Particularly in London where mortgages and living costs are high, it would be quite easy to burn through £16k in less than 6 months. All this for a meager £380 a month UC payment which, let's be honest, doesn't really make a dent.
I am in this situation now and I am quite peeved off that I have paid hundreds of thousands in tax and the best I can get is £380 a month.
Other European countries pay a decent proportion of your last salary for up to 12 months, which is much fairer as you get back a fairer chunk of what you have paid in through the years.
The “safety net” in the UK is laughable; you get better benefits in most of the United States. Countries such as Germany have formal unemployment insurance - based on contributions, you get a sizeable chunk of your salary for a sensible period (time to find new work at the same pay, or downsize your life), then dropping down to similar-to-the-UK levels in the long term.
It is extraordinary we’ve allowed this to get so bad. It of course incentivises the taking of *any* work and helps to keep wages lower; that may be the point.
skwdenyer said:
Agreed entirely. It is £6k for UC by the way; £16k is only for pensioners.
The “safety net” in the UK is laughable; you get better benefits in most of the United States. Countries such as Germany have formal unemployment insurance - based on contributions, you get a sizeable chunk of your salary for a sensible period (time to find new work at the same pay, or downsize your life), then dropping down to similar-to-the-UK levels in the long term.
It is extraordinary we’ve allowed this to get so bad. It of course incentivises the taking of *any* work and helps to keep wages lower; that may be the point.
This is what compelled me to contribute to this thread.The “safety net” in the UK is laughable; you get better benefits in most of the United States. Countries such as Germany have formal unemployment insurance - based on contributions, you get a sizeable chunk of your salary for a sensible period (time to find new work at the same pay, or downsize your life), then dropping down to similar-to-the-UK levels in the long term.
It is extraordinary we’ve allowed this to get so bad. It of course incentivises the taking of *any* work and helps to keep wages lower; that may be the point.
Seems there are many people that manage to make an acceptable living out of “the benefits”, which is what rile people up here, yet someone like me who’s paid loads of taxes and barely used public services like the NHS (private medical insurance), can literally become homeless in the space of a year.
I have about 6 months left before I have to sell my home, because I can’t find an appropriate job (yes I am lowering my standards), despite paying more than £500k in NI and tax in the last 10y…
matrignano said:
skwdenyer said:
Agreed entirely. It is £6k for UC by the way; £16k is only for pensioners.
The “safety net” in the UK is laughable; you get better benefits in most of the United States. Countries such as Germany have formal unemployment insurance - based on contributions, you get a sizeable chunk of your salary for a sensible period (time to find new work at the same pay, or downsize your life), then dropping down to similar-to-the-UK levels in the long term.
It is extraordinary we’ve allowed this to get so bad. It of course incentivises the taking of *any* work and helps to keep wages lower; that may be the point.
This is what compelled me to contribute to this thread.The “safety net” in the UK is laughable; you get better benefits in most of the United States. Countries such as Germany have formal unemployment insurance - based on contributions, you get a sizeable chunk of your salary for a sensible period (time to find new work at the same pay, or downsize your life), then dropping down to similar-to-the-UK levels in the long term.
It is extraordinary we’ve allowed this to get so bad. It of course incentivises the taking of *any* work and helps to keep wages lower; that may be the point.
Seems there are many people that manage to make an acceptable living out of “the benefits”, which is what rile people up here, yet someone like me who’s paid loads of taxes and barely used public services like the NHS (private medical insurance), can literally become homeless in the space of a year.
I have about 6 months left before I have to sell my home, because I can’t find an appropriate job (yes I am lowering my standards), despite paying more than £500k in NI and tax in the last 10y…
That is the cost of living in society
matrignano said:
skwdenyer said:
Agreed entirely. It is £6k for UC by the way; £16k is only for pensioners.
The “safety net” in the UK is laughable; you get better benefits in most of the United States. Countries such as Germany have formal unemployment insurance - based on contributions, you get a sizeable chunk of your salary for a sensible period (time to find new work at the same pay, or downsize your life), then dropping down to similar-to-the-UK levels in the long term.
It is extraordinary we’ve allowed this to get so bad. It of course incentivises the taking of *any* work and helps to keep wages lower; that may be the point.
This is what compelled me to contribute to this thread.The “safety net” in the UK is laughable; you get better benefits in most of the United States. Countries such as Germany have formal unemployment insurance - based on contributions, you get a sizeable chunk of your salary for a sensible period (time to find new work at the same pay, or downsize your life), then dropping down to similar-to-the-UK levels in the long term.
It is extraordinary we’ve allowed this to get so bad. It of course incentivises the taking of *any* work and helps to keep wages lower; that may be the point.
Seems there are many people that manage to make an acceptable living out of “the benefits”, which is what rile people up here, yet someone like me who’s paid loads of taxes and barely used public services like the NHS (private medical insurance), can literally become homeless in the space of a year.
I have about 6 months left before I have to sell my home, because I can’t find an appropriate job (yes I am lowering my standards), despite paying more than £500k in NI and tax in the last 10y…
£500k in ni and presumably income tax over 10 years is £50k a year, so that puts income somewhere around £120k to £140k pa over that period.
Whether this home is grand or modest, ultimately if you can't afford it, it has to go. There should be no expectation you are entitled to own whatever house you want if it is above your means (harsh but true imo)
Whilst there are a proportion of people scamming benefits, I think the view that many people make an "acceptable life" out of benefits is somewhat stilted.
It sounds like it's from a daily mail article rather than any actual experience of knowing people who are trapped out of ever owning property, excluded from career progression or well paying jobs, and stuck in a cycle of living cheque to cheque.
The point about what public services you have personally used is irrelevant to national taxation issues, as they are not services you buy and consume like private goods. I tend to remind people that if they have avoided the need to call on public services - usually provided to the vulnerable and those in need as a last resort - they should consider themselves fortunate.
This thread attracts a very small number of posters who have very narrow (in my opinion) life experience. Their lives have been fortunate enough to allow them to live in a bubble where daily telegraph articles get taken as credible, and day to day reality for many in the economy is something they can't even recognise. One has admitted they look down on benefit claimants as scum. It says it all really, and if they are "riled up" it bothers me not at all.
Ultimately the discussion is about whether unlawful tax evasion is as worthy of investigation as benefit fraud, though the discussion seems to have replaced "worthy of investigation" with "worthy of contempt".
I suppose one requirement of people being hypocrites is the ability to overlook their own hypocrisy.
They're both wrong of course, and investigating crime should be proportional to its severity.
matrignano said:
skwdenyer said:
Agreed entirely. It is £6k for UC by the way; £16k is only for pensioners.
The “safety net” in the UK is laughable; you get better benefits in most of the United States. Countries such as Germany have formal unemployment insurance - based on contributions, you get a sizeable chunk of your salary for a sensible period (time to find new work at the same pay, or downsize your life), then dropping down to similar-to-the-UK levels in the long term.
It is extraordinary we’ve allowed this to get so bad. It of course incentivises the taking of *any* work and helps to keep wages lower; that may be the point.
This is what compelled me to contribute to this thread.The “safety net” in the UK is laughable; you get better benefits in most of the United States. Countries such as Germany have formal unemployment insurance - based on contributions, you get a sizeable chunk of your salary for a sensible period (time to find new work at the same pay, or downsize your life), then dropping down to similar-to-the-UK levels in the long term.
It is extraordinary we’ve allowed this to get so bad. It of course incentivises the taking of *any* work and helps to keep wages lower; that may be the point.
Seems there are many people that manage to make an acceptable living out of “the benefits”, which is what rile people up here, yet someone like me who’s paid loads of taxes and barely used public services like the NHS (private medical insurance), can literally become homeless in the space of a year.
I have about 6 months left before I have to sell my home, because I can’t find an appropriate job (yes I am lowering my standards), despite paying more than £500k in NI and tax in the last 10y…
Tax avoidance is perfectly legal. Why would you not do it? Who doesn't do it? For those who feel they are morally superior, you will have avoided tax and you will never have offered more tax to help the "vulnerable".
Tax evasion is illigal, a crime. Odd being punished for not wanting someone to steal your money and waste it on things you never use, but c'est la vie.
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