Confirmed: Osborne will cut benefits further


by Sunny Hundal    
November 18, 2011 at 8:30 am

George Osborne is planning to cut benefits further in order to fund a cut in fuel duty, the Times (£) reports today.

We have pointed out a few times that Osborne was mulling over a way to cut benefits further after CPI inflation jumped to 5.2%. Normally, that meant benefits had to rise by the same per cent.

But Osborne is planning to change the rules again, after already reducing them earlier (by linking them to the lower CPI rate of inflation, than the higher RPI rate).

Instead, welfare benefits will only be raised in line with a ‘six month inflation average’ – currently at 4.5%.

That will save them just under a billion pounds.

The money will be used to cover the shortfall once the govt abandons the coming 3p rise in fuel duty.

Once again, the most vulnerable in society, including the million unemployed youth, will bear the brunt of this move.


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About the author
Sunny Hundal is editor of LC. Also: on Twitter, at Pickled Politics and Guardian CIF.
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Reader comments


1. David Wearing

Sunny, where is your compassion for the long-suffering motorist?

Between 1997 and 2010 the real cost of motoring declined by 7%.
http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm110214/text/110214w0006.htm

They can’t be expected to go on like this, and if helping them means giving the poorest another kick in the teeth, well isn’t that a price worth paying?

What you need to appreciate is that apart from the £400m gift Osborne just gave Richard Branson, there is no money left. Tough decisions must be made.

2. John Cantrell

@David Wearing

Sunny doesn’t suggest that the scrapping of the 3p rise is a bad thing, merely that the way Osborne is finding the money penalises the poorest members of our society.

There are other ways of finding £1.5b.

How about some compassion for society’s most vulnerable?

3. Janvier

@John Cantrell

Read #1 again. Pretty certain it’s humour.

4. James Firth

A bit hysterical, “cut” is actually just an increase that is a bit smaller, esp considering wage inflation is so low.

Can we see a comparison between wage rises in the lower income brackets vs benefits over the same period?

The issues with using “spot” inflation figures are well known, eg. leading to excessive train fare rises this year, but unfairly small rises in previous years. Hard to avoid statistical anomalies, but using an average figure seems fairer.

5. Steve

David Wearing – Tough decisions for whom? The toughest decision Osborne can make is how to obtain more money for the treasury from the City and the mighty rich who are hoarding billions and not spending.

6. Planeshift

@james – it depends whether you think benefit inflation should be linked to price inflation or wage inflation. If you want it linked to wage inflation then yes, the changes are fair enough. But you then have to be consistant and recognise that this means above inflation rises in benefits when wages rise during a boom.

Now how many people honestly think that in a few years if wages start rising 5%, but inflation is only say 2% the tories will maintain this change? They won’t – they’ll change it again to the lower figure.

7. David Wearing

It disturbs me that anyone could have thought my comment above was serious.

8. Steve

I’ve read David Wearing comment again and can see the humour now.

9. Luis enrique

The ugly side of democracy in action, IMHO, at least. More self interted motoring swing voters than benefit claimant swing voters and altruistic motorists, naked electoral self interest.

10. unionworkeruk

David Wearings comments are not humour if you are a Mail reader and should be applauded..

11. Sally

Of course he will cut further. He is a puppet of the elites. And the elites want austerity for the little people, but not for themselves.

Bailing out Irish banks to protect his mates in the city is just fine with our pip squeak chancellor. I think the lie dems are a bit stupid. They don’t understand the monsters they have gone into govt with.

12. alienfromzog

@1, David,

Thank you for that, that’s really helpful.

I alos agree with the above statements that this is very ugly popularism. Having demonised anyone receiving any kind of benefit (except the state pension), it is then the easy choice to find subtle ways of cutting it. And the ‘poor oppressed motorist’ is a very vocal constituency.

One caveat, that needs to be thought about though is how fuel duty feeds through to inflation. Not just directly – as in the cost to the motorist – but because it impacts on most businesses with increasing transport costs it usually affects prices of lots of things as well.

Of course the right choice would be to find some other way of funding this. But don’t worry about that, there is no possibility of this government ever making an actual tough choice.

AFZ

13. Sunny Hundal

I really worry about the humour gene of some of our readers…. David is obvs joking.

Also – its a cut in real terms, to the person telling me it’s a rise…

14. Robin Levett

@James Firth #4:

The issues with using “spot” inflation figures are well known, eg. leading to excessive train fare rises this year, but unfairly small rises in previous years. Hard to avoid statistical anomalies, but using an average figure seems fairer.

You’re going to have to talk me through this one. Prices have risen by 5.5% since the last time benefits were uprated; by taking an average of inflation over 6 months, benefits will be uprated only by 4.5%. While this is a once only reduction in real-terms benefits, it is a reduction. Why is that fair, let alone fairer.

15. Leon Wolfson

@4 – It’s a real-term cut, from an already very low base, at a time when the a vast number of recipients will be topping up their rents, given the housing benefit cuts, from that cash.

It’s money directly taken from the poor’s pockets for those little “essentials” like food and energy (20%+ rises, remember those?), and given to EVERY driver.

It’s another *outright attack* on the poor.

16. Robert the retard

That F*ck we had a labour party, who of course gave us the lowest benefit rises in history, or was the 75p rise just a laugh.

Labour Tory hard to find the difference these days.


Reactions: Twitter, blogs
  1. Matthew S. Dent

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  2. Humanitas

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  3. Stuart Middleton

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  4. Matt Zarb-Cousin

    Confirmed: Osborne will cut benefits further http://t.co/5O1hSoyg

  5. David Wearing

    Branson gifted a cut price bank from the public. Meanwhile… RT @libcon: Confirmed: Osborne will cut benefits further http://t.co/dz8CBn32

  6. Charlotte Young

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  7. Ferret Dave

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  8. David Morton

    "@libcon: Confirmed: Osborne will cut benefits further http://t.co/gO89GaPG&quot; < Is this true ?

  9. Martin Eve

    RT @sunny_hundal: Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/slNVa4Lq

  10. Janis Cowan

    RT @sunny_hundal: Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/TzGbihkZ

  11. Noxi

    RT @sunny_hundal: Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/sDLEgSYk

  12. _

    Confirmed: Osborne will cut benefits further http://t.co/5O1hSoyg

  13. Alfie startup

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  14. Bern O'Donoghue

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  15. Patrick McGuire

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  16. Mike Simpson

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  17. The Tweets of March

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  18. malcolm

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  19. Patrick Torsney ?

    Confirmed: Osborne will cut benefits further: http://t.co/0csEb21K Via @DearDaveandNick

  20. Roger O Thornhill

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  21. Psyborg9

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  22. Melissa Richards

    Apparently decreasing the cost of motoring is more important than helping our most vulnerable! http://t.co/PCRypgRs via @libcon

  23. Terry Firmer

    “@libcon: Confirmed: Osborne will cut benefits further http://t.co/VeN3BMEy” <benefits cut, petrol duty rise cancelled, yep- #sameoldtories

  24. Justin B

    Confirmed: Osborne will cut benefits further http://t.co/5O1hSoyg

  25. Robin

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  26. Paul Abbott

    Rumours that Osborne may freeze fuel duty, after long campaign from @halfon4harlowMP and @FairFuelUK http://t.co/Y0ZI5sLa via @sunny_hundal

  27. Samantha Dunning

    Confirmed: Osborne will cut benefits further http://t.co/5O1hSoyg

  28. James Brinning

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  29. Natalia

    Branson gifted a cut price bank from the public. Meanwhile… RT @libcon: Confirmed: Osborne will cut benefits further http://t.co/dz8CBn32

  30. ann driver

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  31. Andy S

    Confirmed: Osborne will cut benefits further http://t.co/hiCMR5qf (via @libcon)

  32. Andy S

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  33. C.

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  34. Wildey

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  35. Jane Phillips

    Confirmed: Osborne will cut benefits further http://t.co/5O1hSoyg

  36. Richard Hebditch

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  37. Jacob Craqueur

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  38. Mehdi Hasan

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  39. Mark

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  40. Derek Thomas

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  41. toomuchguff

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  42. Len Arthur

    Confirmed: Osborne will cut benefits further http://t.co/5O1hSoyg

  43. Lauren G

    Cutting benefits to make petrol cheaper http://t.co/sxdlVhVP Sing "Fuck the poor" a bit louder, Gideon, I can't hear

  44. azulbuho

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  45. Jon Land

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  46. Dr Anne Brunton

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  47. IanBlair

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  48. christine clifford

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  49. David Cullen

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  50. Seb Alexander

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  51. Mags W

    RT @sunny_hundal: Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/r2GZuSCO

  52. Krissie

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  53. Mike Fraser

    RT @sunny_hundal: Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/r2GZuSCO

  54. Kim Blake

    Confirmed: Osborne will cut benefits further http://t.co/5O1hSoyg

  55. brian hocknull

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  56. Luke Moore

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  57. Alex Braithwaite

    Confirmed: Osborne will cut benefits further | Liberal Conspiracy http://t.co/1hdvnNyI via @libcon

  58. Jane Cross

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  59. Buck Thomas

    “@libcon: Confirmed: Osborne will cut benefits further http://t.co/sPLatYGu”

    This makes me feel sick. Gideon is hideous.

  60. Kath Archer

    RT @libcon: Confirmed: Osborne will cut benefits further http://t.co/LBJT6NBW

  61. Angela la Land

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  62. James Firth

    A bit hysterical, "cut" is actually just an increase that is a bit smaller, esp considering wage inflation is so low: http://t.co/mFJaT8aZ

  63. The Root's Tweets!

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  64. newspyre

    UK will cut benefits further, hitting most vulnerable hardest http://t.co/yyYrxpOx rt @sunny_hundal:

  65. Lou

    RT @libcon: Confirmed: Osborne will cut benefits further http://t.co/LBJT6NBW

  66. Nighet Nasim Riaz

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  67. alex thorne

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  68. VirtualResistance

    http://t.co/Ma8ZaPTE Confirmed: Osborne will cut benefits further

  69. Calum

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  70. Spir.Sotiropoulou

    Confirmed: Osborne will cut benefits further | Liberal Conspiracy http://t.co/pPU5b1W9 via @libcon

  71. Molly

    Confirmed: Osborne will cut benefits further http://t.co/5O1hSoyg

  72. ian boersma

    RT @libcon: Confirmed: Osborne will cut benefits further http://t.co/GC1nX0DQ

  73. Dan Brown

    Confirmed: Osborne will cut benefits further http://t.co/5O1hSoyg

  74. Kat Friel

    Confirmed: Osborne will cut benefits further | Liberal Conspiracy http://t.co/9BjKgIqG via @libcon

  75. Adil

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  76. Guy Manchester

    George Osborne is planning to be a cunt again: cutting benefits further in order to fund a cut in fuel duty http://t.co/U8Sbqaj0

  77. Bern O'Donoghue

    Classy:Osborne will cut #benefits further 2 fund cut in #fuelduty |Liberal Conspiracy http://t.co/QcHM8uix via @libcon Thieving from poorest

  78. Alex Andreou

    Classy:Osborne will cut #benefits further 2 fund cut in #fuelduty |Liberal Conspiracy http://t.co/QcHM8uix via @libcon Thieving from poorest

  79. Didi Von Moneyheimer

    Classy:Osborne will cut #benefits further 2 fund cut in #fuelduty |Liberal Conspiracy http://t.co/QcHM8uix via @libcon Thieving from poorest

  80. roundclapton

    Confirmed: Osborne will cut benefits further, hitting most vulnerable (incl unemployed youth) hardest http://t.co/UW4AV7GX

  81. Jamie

    Confirmed: Osborne will cut benefits further http://t.co/XnvDyZon

  82. Jamie

    Confirmed: Osborne will cut benefits further http://t.co/XnvDyZon





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