This week the main political parties have been talking about a living wage, which appears to be a cynical move to reduce welfare costs by passing them onto the business community, but like everything else, it has not been thought through to its logical conclusion.
Once set as the amount needed to live on, it should apply to all areas, particularly pensioners, who have been hardest hit by inflation rises not being applied in the past to the State pension, resulting in the erosion of this contributory pension to the poverty level or below.
In spite of all the information and statistics on living costs, no one has come out with or published tables on what is the basic income needed to survive for a single person, couple or children. It was once taken care of in tax allowances, which was overridden by welfare concern for equality.
A figure of £7.45 per hour is being suggested, which represents £149 per week for the average part timer on twenty hours and some £280 for a full time worker, giving £7,750 and £15,000 per year. Of course at the full time level, tax, NI and new pension payments will be due totalling £3,100, bringing nett wage down to £12,000 and the Employer would be liable for £1,750.
At the present minimum wage full time would give just under £10,000 income with some £900 deducted, so the biggest winner is the State with less benefit and more tax/NI income. If the living wage is at this level then logically it should be free of all deductions, resulting in a massive loss of State revenue, if tax and NI thresholds are set there.
Where would pensioners stand, are they not entitled to a living wage, which is being set at twice the new proposed single tier pension level, the whole thing is a nonsense, without thought, of course we need change to welfare, but it needs a sensible approach.
Statisticians divide the nation into five parts, fifth’s or quintiles, the upper highest level are immune to budget economics and taxation effects, if paid due to their high income, as are the lowest level, living on welfare. It is the three middle levels who carry the main burden; they are industrious and ambitious who meet their responsibilities and pay their dues to Society; the backbone taken for granted and exploited.
This needs recognition and a change in attitude; if they pay in, they are entitle to draw out in some form of relative proportion, whether it be in pensions, child allowance or any other form. The State apparently takes no account of this earned debt/ investment benefit; in fact it confuses welfare and earned benefit, all being classed as benefit without discrimination.
This has led to the current state of affairs where one is better off not working or meeting any responsibility to Society; there is a need for welfare but it has to be kept in perspective and be affordable; wealth redistribution has to be kept within limits.
One needs to separate out earned from welfare; if you have worked hard and fall on hard times you deserve better treatment than those who have not, we have lost those ways and ideals. There could be some form of paid National Social Service with job training for those who have no work but are able, which could ensure full employment.
There are some who will be unable or incapable of work, the full time carers, students, home makers and disabled who need support; this is the real welfare, not the indolent itinerants who have no intention of supporting themselves and feel we all owe them a living, This should include immigrants, foreign nationals and non residents.
The time for change is well overdue, we are not even scratching the surface; restricting benefit to the gross average wage is a good example, it should be at least half or less to make work worthwhile. We cannot afford idealistic principles, which are mainly one sided.
We need to get back a sense of fairness in Society and a return to the basics of Society and Social gathering itself; if you are in and contribute you should benefit; if you put yourself outside by any anti-social behaviour including failure to work, you need to re-apply and earn the position. It is quite simple and logical and overrides human or any other individual rights, we have lost sight of the fundamentals.
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