Universally unfair credits: No justice for the poor

Well the day has finally come. Later today the government will set out how it intends to overhaul the welfare system to try to make work pay better and to tackle the "benefit culture". With it will come a new "universal credit", new sanctions for those turning down jobs and a cap on benefits paid to a single family.

According to Cameron, current rules "encourage people to act irresponsibly".
The reason behind all these changes? Is it because they want to make benefits fairer for all? No. Is it because they want to ensure those who are hurt hardest by the unfairness in society are protected? No.

According to ministers in the Department of Work and Pensions, five million people of working age are on out-of-work benefits, 1.4 million of those for nearly a decade, while unemployment has become entrenched in many communities. In the view of these Tories, many of whom are millionaires who have never been on benefit; this shows the current system is not working.

Ahead of the announcement, David Cameron said the "collective culture of responsibility" which had underpinned the benefits system for more than 50 years had eroded in recent years.

"The benefits system has created a benefit culture," he said. "It does not just allow people to act irresponsibly but often actively encourages them to do so."

As usual the Tories are determined to attack the small number (and even DWP are admitting the numbers are less than they have been saying) of people who abuse the benefit system. Nobody in the Tory party mentions anything about the number of companies or individuals who regularly abuse the tax system and, courtesy of clever accountants avoid paying millions in taxes.

Take for example Vodaphone, who have managed to save billions through effective use of tax havens. Oh it’s legal enough, but is it moral? Well there you have the $64,000 question.

Just as the Tories were coming into power a number of businesses saw the opportunity of a lifetime. In a study at that time, around one quarter of all self-employed people in the UK were considering moving themselves and their businesses abroad over the next five years. Is this how Cameron is going to promote business and help the unemployed find work?

It has been well documented that Philip Green has structured the ownership of the Arcadia group (which owns Topshop and Dorothy Perkins) so that neither he, nor his wife pay UK income tax on profits paid out by the group as dividends. Because Mrs Green lives in Monaco, she saves a packet. If dividends were instead paid to Mr Green as a UK tax resident, he would be subject to UK income tax at an effective rate of 36.1% (42.5% additional rate less 10% credit).

But you don’t hear the Tories whining on about these folk, and why? Because they and others like them bankroll the Tory party, Green is close buddies with Cameron – don’t forget he was asked by the prime minister to do an analysis of government spending and procurement. So we can’t expect these buddies to fall out too soon.

No, as usual it is the poor who will be beaten and bruised today. There will be no fairness, no equality and no justice for those needing welfare benefits.

Some things in life never change