Where I'd swing the axe - Intro and Part 1 (Benefits)

Tomorrow sees the unveiling of what may well prove to be the most important UK Budget in a generation.  Coming as a result of a Conservative manifesto promise (and, let's face it, out of sheer necessity), the "Emergency Budget" will look to make savings in as many places as possible in a bid to cut the massive debt hanging over the head over every man, woman and child in the UK today.





One thing is painfully clear: there will be no easy or painless way of cutting the exorbitant amount of public spending that is drawing the UK nearer and nearer to the edge.  Difficult decisions are going to have to be made and not everyone is going to like them.  However, the Chancellor has one thing on his side: time.

Chancellor, George Osborne discusses the upcoming Budget with Nick Clegg

George Osborne is in a good position; he has 1,780 days until the next election.  This should mean that he can be a little less selective in where he swings the axe tomorrow.  He can raise taxes a little and make some controversial cuts, safe in the knowledge that if the measures work he can perhaps lower the same taxes or increase the same spending in the 2014 or 2015 Budget in order to win a few more supporters.


I imagine that this time tomorrow I shall be picking over what has been decided and announced and giving you my own thoughts on the bones of the Budget.  But for now, I'd like to let you know what I'd do if I was in Mr. Osborne's shoes...

The Cuts

Benefits

This is sure to be one of the most controversial areas to cut, but also the most necessary.  The main problem with many benefits is that they go to the people who need them the least.  A good example of this is Child Benefit.

Child Benefit goes to anyone who fulfils the criteria, regardless of how much they earn.  At present, the rate is £20.30 a week for the first child and then an additional £13.40 a week for every other child.  Because of the fact that it is not means-tested it means that even the richest millionaires in the UK are able to claim it as long as they have a child.  To these people £20 a week is nothing and really doesn't make the difference in their day-to-day lives.  If they can live without it then they shouldn't be getting it in the first place.

We need to ensure that they are not going to those who simply don't need them

As well as this, the thresholds for certain benefits would need to be brought down.  It beggars belief that families with an income of £50,000 a year can still claim Tax Credits, for example.

The idea of any form of benefits should be simple.  They should exist purely to enhance the income of an individual to the minimum that they need in order to afford the essentials in life.  A clear figure needs to be researched, set and stuck to whereby an individual is deemed to have the money needed in order to survive.  Benefits should be used to bring an individual's income up to this figure; not a penny more, not a penny less.

Winter Fuel Allowance

The so-called "Grey Vote" has always been important to politicians so pensioners have obviously benefited the most from a lot of initiatives under the previous government.  However, one must ask whether the money needs to be spent.

Let's take the Winter Fuel Allowance as a case in point.  It is clear that it has helped a great number of pensioners heat their homes throughout cold winters and has probably saved some lives too.  However, it needs to be means-tested.

Why is it that the government are paying all pensioners between £250 and £400 a year regardless of whether they have the means to pay for fuel in the first place.  I am sure that by ensuring that the likes of Cliff Richard and The Queen are not entitled to these payouts the government would be able to save an awful lot of money.

How about taking these unnecessary payments and instead giving them to non-pensioners who cannot afford to heat their homes?

State Pensions

In much the same vein as my previous point; why should those with millions in savings or gold-plated pension schemes be entitled to extra money from the government?  The state pension should again be linked to income so that those who don't need it won't get it and those who need more can get more.

Free bus passes

A good idea... when the money is there to finance it.  Again, they're a good idea, and surely invaluable, for those who cannot afford their own transport.  However, when they become a blanket-right for all those of pensionable age then they simply become a waste of money.

For the above four points the message is clear.  If we need to tighten our collective belts as a nation, then we need to make sure that every penny that is being spent on benefits, needs to be spent.  We should be looking to take away blanket-rights to benefits and instead make sure that they are means-tested to ensure that they are not going to those who simply don't need them.