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How Can A Government That Spends Billions On Mass Testing Quibble Over Helping The Low Paid?

(116 Posts)
PippaZ Tue 19-Jan-21 08:27:21

I've pinched the Waugh Zone headline because I don't think I can put it any better.

When politicians appear to defend the bureaucracy of a system rather than the needs of the public, they can sound tone deaf. When that defence involves matters of life and death, they risk coming across as robotic at best, callous at worst.

We have just seen the Government challenged, and thankfully six MPs have voted against plans to cut the Universal Credit £20 per week uplift. This is a non-binding vote but has, at least, shown some Tories have a conscience.

However, there still test and, 'if we've got time', trace. Dido Harding expects 90% of the massive £22bn budget would go on testing, not tracing. And the bulk of the new tests would be lateral flow tests and, we are told, that 900 staff from consultants Deloitte are working for Test and Trace, at an average cost of £1,000 a day.

As well as stopping the £20 a week uplift, which we now know makes even some Tory MPs uncomfortable, Sunak surely has to face the issue of people not self-isolating because of money worries.

Large numbers of low paid or self employed are not covered by the £500 payment and yet, knowing many of these people may then feel they have to work, no one has attempted to solve this - so the spreading continues for the want of £500. The horse shoe nail of the pandemic.

growstuff Wed 20-Jan-21 09:38:43

I don't think this has anything to do with systems. It's to do with a government which doesn't have a clue how precarious some people's existences are. Losing a few thousand might seem like pocket money to them, but to the low paid it's a fortune.

growstuff Wed 20-Jan-21 09:35:47

I found the article after I'd posted. It's spin and an attempt to deflect. There is a group which went to Parliament to lobby and various MPs, including Caroline Lucas, have brought it up in the HoC. Sunak said nothing about problems with HMRC when making his excuses. The bottom line is that they think the self-employed are fiddling their taxes, so don't deserve anything. All he did was go on about the people who had been helped and how proud the government was of its record blah blah. In my case I've fallen foul of the 50/50 rule - nothing to do with HMRC. The biggest industry which has been affected is performing arts, which Sunak has repeatedly refused to help, despite handing loadsa dost to the fishing industry. Performing artists have suffered a double whammy with Brexit.

PippaZ Wed 20-Jan-21 09:03:56

Sorry Growstuff, I forgot to put the reference in. It's here: www.bbc.co.uk/news/business-55722549

But despite this, a report from the MPs says "quirks in the tax system" have meant that groups of workers - including freelancers and self-employed people who recently moved onto company payrolls or work on a series of short-term employment contracts with gaps in between - have been ineligible for furlough payments.

"As public spending balloons to unprecedented levels in response to the pandemic, out-of-date tax systems are one of the barriers to getting help to a significant number of struggling taxpayers who should be entitled to support," said MP Meg Hillier, chair of the Public Accounts Committee (PAC).

I think the biggest issue is that the systems have not kept up with a changing world. This is yet another example of where years of cuts while the rich contributed proportionally smaller and smaller amounts has unwound the systems that help govern this country and the extreme views of the far right (just as those of the far left) end up damaging the country for the communities, families and individuals in it.

Dorsetcupcake61 Wed 20-Jan-21 08:43:20

Doodle,that was a chilling thought. I would like to think they are not that forward thinking but their hostility towards the poor and vulnerable seems to be the one of the few things they are world beating at.
Sadly the £20 UC is just the tip of the iceberg. The safety net in all areas is hanging on a very thin thread.
A Universal income would at least give people a baseline of dignity.

growstuff Wed 20-Jan-21 08:43:06

PippaZ Do you mean with reference to the self-employed? If so, it's an excuse and attempt to blame HMRC. I'm one of the people who didn't receive any Covid-related payment and eventually had to apply for Universal Credit. Those with partners or more savings than I have can't even apply for that. It's not the systems which are wrong, but the government's own policy. It can't claim ignorance of the problems because it's been told a number of times and has just turned a blind eye. Meanwhile, those people who qualify for furlough haven't been means-tested and some have other jobs in addition to their payment for their usual job.

PippaZ Wed 20-Jan-21 08:37:05

We are hearing this morning that the reason so many people are falling through the gaps when it comes to Covid related payments is that tax systems are out of date. MPs have given HMRC six weeks to set out steps to fix the problems.

I feel that the government will simply not be brave enough when we eventually start to rebuild our economy as they spend their time looking over their shoulder at who will vote for them. They have no morality when it comes to what is best for the country. I do wish they would look at a simple universal income for all, taxing it back (plus, where appropriate) from those who do not need it.

This would allow people to set up new businesses in areas we never thought of before, retrain where they feel the need and take up caring responsibilities if that is what they wish to prioritise. Fast growth back to a thriving economy that suits people rather than governments could be rolled out much quicker using this mechanism.

Whitewavemark2 Wed 20-Jan-21 08:21:28

This country is more divided now than it has ever been particularly between wealth and poverty.

If Sunak is serious in addressing the economic fragility, he would put the money into those who we know will spend it and help the economy recover, that is the most poor and those who have been most affected by the Brexit effect and the covid downturn.

This means providing an economic boost to the poor. No amount of tax cuts etc will have any affect on the economy because the rich simply don’t spend it they just squirrel it’s away.

Cutting benefits and thereby cutting economic stimulus makes absolutely no sense.

growstuff Wed 20-Jan-21 02:31:09

lemongrove

Dinahmo
None of us can know exactly how things will be in a few months, but certainly the businesses who reopen will need staff, and many pubs in particular, along with restaurants, will need to pick up more waiting staff.They lost many as they had to let them go,( and they will now be doing different sorts of work.)
Certainly by July ( if the £20 is extended to then) things will be looking very different to now.

Why "certainly"? It's not looking that way at all.

growstuff Wed 20-Jan-21 02:30:16

Well said Doodledog.

PippaZ Tue 19-Jan-21 23:59:12

A good point, well made Doodledog. In the short term it seemed odd but presumably presumptions were made that it would last a very short time. However, it now seems very odd as I think you actually have to show there is no work for those on furlough. I think we may see some very hard changes this year and more will see just how pitiful UC actually is and what owing your soul to the government feels like.

I agree with your comment "Both, IMO, should have decent support to keep ticking over until they can get back to work, whether in the job that has been kept open for them, or in a new one if theirs has been lost to redundancy or business closure.", but I can already hear the cry of "how will we repay it" I'm afraid. Some people never learn.

Doodledog Tue 19-Jan-21 23:46:25

I must admit there is a small but very spiteful part of me that almost relishes that those who may have disregarded the plight of the majority in receipt of benefits will get to see how it really when find themselves needing it due to current economic mess.

What I've never understood is why the payments to those unable to work (ie on furlough) have been so much higher than to those unable to work because of job losses for reasons other than the pandemic. Up to £2700 a month on furlough, compared to a pittance on UC. Furlough is not means tested either, and any earnings are not deducted if work elsewhere is found, unlike UC, which is not payable to those who have saved all their lives.

I can't help thinking that this is being done deliberately, so that those on furlough never get to experience what it's like to live in poverty, in case this reduces the government's support for keeping benefits so low. If people experienced life on UC (whether at first hand or by proxy via their children), maybe the vitriol poured onto claimants, and the insistence that parental help in the form of presents and general 'helping out' should be deducted and savings taken into account would diminish, and there would be calls to 'level up' more vigorously and speedily.

In my mind, there is no difference whatsoever between being unable to work for reason A or reason B. Both are beyond the control of the individual, and a personal tragedy for the people concerned and their families. Both claimants will have paid into a National Insurance scheme to cushion the blow of temporary unemployment. Both, IMO, should have decent support to keep ticking over until they can get back to work, whether in the job that has been kept open for them, or in a new one if theirs has been lost to redundancy or business closure.

PippaZ Tue 19-Jan-21 22:21:29

Would this be better on it's own thread? It does seem to be railroading the original OP.

twiglet77 Tue 19-Jan-21 21:02:41

Alegrias1

OK, really sorry but I'm going to defend myself here. If people say we're the top of the table for infections or anything else, and we're not, then it is misrepresenting the way we are dealing with this pandemic and I will continue to call it out. I am very angry with the way that this whole thing has been handled by the government but I am not going to let exaggeration stand unchallenged.

Off topic of the thread but... the table showing the UK as having the highest number of deaths is deaths per capita over the last seven days, not in total since the start of the pandemic.

PippaZ Tue 19-Jan-21 20:30:59

One pundit speaking earlier said that, where the £20 is concerned, the best thing is to "keep it under review". If they simply let if roll into the UC then it becomes a precedent.

lemongrove Tue 19-Jan-21 20:29:56

Dinahmo
None of us can know exactly how things will be in a few months, but certainly the businesses who reopen will need staff, and many pubs in particular, along with restaurants, will need to pick up more waiting staff.They lost many as they had to let them go,( and they will now be doing different sorts of work.)
Certainly by July ( if the £20 is extended to then) things will be looking very different to now.

Alegrias1 Tue 19-Jan-21 20:29:37

Hetty58

Apologies all - I really should have said 'the worst death rates in the World' shouldn't I?

www.independent.co.uk/news/health/uk-covid-death-rate-coronavirus-b1788817.html

Ah, OK - more people are dying per day in the UK just now that in any other country - just now.

Overall more people have died per head of population in several other countries.

I do apologise if that sounds crass, I don't mean it to.

growstuff Tue 19-Jan-21 20:26:05

PippaZ

growstuff

Pippa It's the discredited idea of "trickle down economics".

I find it hard to believe anyone still believe that is actually what happens, growstuff but I suppose generations take their beliefs forward with them.

You can see it even on this thread.

PippaZ Tue 19-Jan-21 20:22:16

growstuff

Pippa It's the discredited idea of "trickle down economics".

I find it hard to believe anyone still believe that is actually what happens, growstuff but I suppose generations take their beliefs forward with them.

Hetty58 Tue 19-Jan-21 19:21:15

Apologies all - I really should have said 'the worst death rates in the World' shouldn't I?

www.independent.co.uk/news/health/uk-covid-death-rate-coronavirus-b1788817.html

Dinahmo Tue 19-Jan-21 19:05:19

PippaZ The short sharp answer to your question is - they don't give a toss about the poor people.

Dinahmo Tue 19-Jan-21 19:04:18

Lemongrove

"On the continuation of the £20 top up for the duration of Covid, perhaps by April things will have changed for jobs and the economy and won’t be quite as needed, or perhaps Sunak will be unveiling something else at the Spring Budget".

Do you really think that in 2 1/2 months time, businesses will be back to working at sufficient strength to take on new staff? Rose coloured specs comes to mind.

Dinahmo Tue 19-Jan-21 18:58:06

Alegrias1

It is and I'm sorry for derailing it. But I won't let misinformation go uncorrected when it is such an important topic.

They've been saying on the news, all day, that the UK has the highest death rate.

growstuff Tue 19-Jan-21 18:55:00

MaizieD

Even if they 'squandered' the extra money on beer and fags and flatscreen tellies, it would still come back to the government because all those things are taxed. It's not going to disappear into a black hole somewhere...

This is really basic Keynesian economics...

In some ways it would be better for the government if they did spend it on booze and fags because they're heavily taxed. As it is, the poorest are likely to have to spend all their money on rent, utilities and food with technology, travel and clothes as extras.

growstuff Tue 19-Jan-21 18:50:44

EllanVannin

Wait until the unemployment bubble bursts after this pandemic ! There'll need to be more than £20 " top-ups " needed for those who've skipped mortgages/ rents and bills !!

There certainly will! People need to get it into their heads that poverty isn't always caused by so-called fecklessness.

MaizieD Tue 19-Jan-21 14:15:15

Even if they 'squandered' the extra money on beer and fags and flatscreen tellies, it would still come back to the government because all those things are taxed. It's not going to disappear into a black hole somewhere...

This is really basic Keynesian economics...