"EXTREMELY TOUGH?"

I wasn't intending to write a post today, so soon after yesterday's Campaign Start posting but I've just read an article on the East Anglian website that has compelled me to blog about it. Before I became a member of our District Council I was aware of the general concept of housing benefit and that some poorer households got help with their rent and that social housing rents were subsidised. However I rather naively assumed that everyone paid council tax.  After all, there are 8 bands with the top band paying three times the amount of the lower band - a rather blunt and very progressive tax.  I'm guessing that most people assumed likewise as I like to think of myself as well read but without then knowing the in and out minutae of the housing benefit system.

That changed last year when the council members were briefed about the housing benefit and council tax changes.  We were advised that central government were reducing the payments by 10% but that pensioners would be protected so that the 10% savings would have to met by working age claimants.  In practice this has been significantly diluted by forcing second home owners to pay 100% council tax on their second properties (even if just used occasionally) and charging landlords a full council tax on unfurnished properties if their void periods between lettings exceeded a few weeks.  The general consensus across all political parties of the council felt that these two changes were reasonable.

That still left some working age benefit claimants having to pay more (or rather some) council tax.  In Mid Suffolk's case, going from zero to 5% and in Babergh's case from zero to 8.5%.  It appears from the East Anglian article that some Essex families are going from zero to 20%.  I must confess that I would have been happier to see the payments change to something other than a token contribition as these small amounts will be difficult to collect - 5% is the equivalent of four cigarettes a week or a lottery ticket and a small chocolate bar a week.

In the website/newspaper article you will see a Director of the New Policy Institute (whoever they are) saying "We are turning into a society where we are extremely tough on those at the bottom of the income pile".  Extremely tough!!!!  Expecting people to pay 5% towards their council services is extremely tough?  Council services are the bedrock of a civilised society - education, waste collection, highways, care of the elderly etc. - not some extravagent luxuries.  Someone paying just 5% of Band A towards these vital services is paying 1/30th of someone owning an average Band D property.

Anywhere else other than with these 'hidden' (ie. non-apparent) subsidies and I think the average person would be speaking out vocally about this enormous level of discount.  For example - going in to the petrol station and waiting in the queue to pay and they hear the cashier say to the person in front of them "That will be 5p a litre please for your diesel".  Or with a trolley full of shopping (say £60 to keep the maths simple) in the local supermarket and the person in front has an identical trolley full but is charged just £2.  There would be a loud chorus of "Why are they getting petrol at 5p a litre?" or "How come they're getting their trolley full for only £2?"  And if those people then went on to buy a full price packet of cigarettes or a lottery ticket with their savings then imagine the outcry!

Of course the person from that policy institute would be a voice in the background advising us that 5p a litre or £2 a trolley full is still extremely tough on these people at the bottom of the income pile.  The ultimate irony is that even their 5p's and £2s may be being paid by you and I anyway through the tax and benefit system. 

And that's why I chose as the first priority on my County election leaflet "To speak up for the 'squeezed middle'"  All those people who are working hard, pay a lot into the system, get little back out and who are now finding day-to-day budgeting to be extremely tough despite making all the best efforts themselves.