£25bn welfare cuts? Hilton’s plan is absolute nonsense

Even The Sun, the ultimate scrounger bashers, thinks Steve Hilton’s latest idea is “daft”, writes Richard Darlington, head of news at the IPPR.

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Richard Darlington is head of news at the Institute for Public Policy Research (IPPR)

Even The Sun, the ultimate scrounger bashers, thinks Steve Hilton’s latest idea is “daft”.

On page 2 today they quote a source close to Iain Duncan Smith saying the idea to cut another £25bn from the welfare bill is “absolute nonsense”, adding:

“Steve’s gone totally rogue.”

Lib Dem peer Lord Oakeshott says:

“This is wacky even by Hilton’s standards.”

But let’s take a moment to test the hypothesis. If you really did want to get £25bn cut from the welfare bill, how would you actually do it? Try and do-it-yourself.

Here are your options:

Breakdown-of-welfare-spending-2009-10

 


See also:

Breaking down the benefits bill 21 Mar 2012


 

Even if you entirely scrapped all out of work benefits – jobseeker’s allowance, plus income support and ESA – you’d come up £4bn short. You’d have to almost halve the state pension – not really a vote winner. Or you could entirely scrap Child Tax Credit and Child Benefit or Housing Benefit and Council Tax Benefit.

Like The Sun says, daft. Bye, bye Steve.

 


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41 Responses to “£25bn welfare cuts? Hilton’s plan is absolute nonsense”

  1. Gawain Golightly

    Sure, I would abolish all State benefits and give every adult a social wage of £250 per week. I’d abolish National Insurance, and put income tax on all earned and unearned income at 50%. This would cost a fair amount, but raise a lot more and also liberate millions from the poverty/benefits trap of means testing, and free up at least a million civil servants and professional welfare rights advisers from meaningless paper-shuffling employment, free to take up a useful job for a change.

  2. Eric Greenwood

    Other, £6 Billion for what??? Working tax credit £8 Billion, Child Tax Credit £19 Billion… there you go.. what did people do before working tax credit, and child tax credit..

  3. Richard Darlington

    that would mean working parents would be better off on unemployment benefit than in low paid work

  4. Anonymous

    Many people would have had full time jobs that paid a living wage at a time when housing could be found at a reasonable cost. Much of that has gone now, buying a home is way out of most peoples reach, there’s very little in the way of council/social housing, whole industry sectors have been closed down and those companies that do employ large numbers of relatively low skilled workers pay low salaries that are then subsidised by the State. Quite why we couldn’t subsidise investment in manufacturing and keep more highly skilled and highly paid jobs is another question, a question definitely worth asking!

  5. Tony

    Didn’t he get done for fare dodging?

  6. Blarg1987

    One way the benefit bill could be reduced is to regulate certain areas more i.e. the private rented sector, where by caps can be put on what they charge, this would gradually feed through the system as a saving.

    But witha goverment that believes in the free market who’s job is to make money at any cost, the benefit bill will only go up as more is outsourced to private companies with no ceiling on charges and porr regulation on service provision.

    There are to many sticks for the person in reciept of benefits and to many carrots for companies running these services, there needs to be a swtich, as if this goverment is saying it is helping all tax payers, they would be focusing more on organisations that spend tax payers money, other then the oublic sector itself.

  7. Anonymous

    Those dirty American lefies use rent caps in many cities, it’s far too radical an idea to be used here, Blarg! It wouldn’t “feed through” either, it would be immediate savings.

    (But yes, real solutions are in short order from the coalition)

  8. Anonymous

    Live in poverty. Starve. All the things you hold to be fine for the poor.

    Making sure that the poor have no opportunities, and that your birth class determines your life chances…cardinal principles of your set, quite.

  9. Anonymous

    That’s hardly abandoning the poor, though, as a straight 25 billion cut would.

    It’s also, personally, too radical for my tastes. Smaller steps for me…
    …Rent caps
    …Raise the minimum wage and abolish the WTC

    And so on.

  10. Blarg1987

    Well their solution reflects their ideology let the markets and the privatee sector sort itself out, except when it says it needs the state to give it money, as some commentators havesaid, capatalism for the poor, socilism for the rich.

  11. Anonymous

    Yes, because wages have increasingly been squeezed by capital. If the trend to the 70’s had held steady, or even stabilised, we’d have been fine – but we’re now in a situation more uneven that the great depression…

    And who profits, DJT1million? The 1% don’t need a large middle class.

  12. Anonymous

    Well yes. See 101 of my previous posts on corporate welfare.

  13. Blarg1987

    You have to also remember before working tax credits etc, a teacher was entitled to a council house, trade unionism was stronger allowing workers to have a better bargoning power so as industry flourtished, prfits were shared between employers and employees, direct taxation was higher yes, but money was invested in projects which encouraged more growth, i.e. concorde, although a flope led on to the creation of airbus which is now a world leader in aviation, shame we sold our share of airbus and now although wings are still manufactured here for the forseabale future, if things get allot tougher out there, how long before other nations bring jobs back home to gain political capital?

  14. Wendy MacKenzie

    £25bn welfare cuts? Hilton’s plan is absolute nonsense | Left Foot Forward //t.co/yaK9Wxql

  15. liane gomersall

    RT @leftfootfwd: £25bn welfare cuts? Hilton’s plan is absolute nonsense //t.co/xbjG81FP

  16. Richard C Renson

    Frm earlier: £25bn welfare cuts? Hilton’s plan is absolute nonsense, writes @IPPR’s @RDarlo: //t.co/tjEo7IqB

  17. S

    Frm earlier: £25bn welfare cuts? Hilton’s plan is absolute nonsense, writes @IPPR’s @RDarlo: //t.co/tjEo7IqB

  18. Ste'Softlad'Canlett

    Frm earlier: £25bn welfare cuts? Hilton’s plan is absolute nonsense, writes @IPPR’s @RDarlo: //t.co/tjEo7IqB

  19. Steph

    @leftfootfwd: £25bn welfare cuts? Hilton’s plan is absolute nonsense //t.co/1EId22Kv Unless they attack pensions, nothing left to cut!

  20. Foxy52

    Frm earlier: £25bn welfare cuts? Hilton’s plan is absolute nonsense, writes @IPPR’s @RDarlo: //t.co/tjEo7IqB

  21. PCS North Staffs

    “@leftfootfwd: Frm earlier: £25bn welfare cuts? Hilton’s plan is absolute nonsense, writes @IPPR’s @RDarlo: //t.co/501c2EIJ”

  22. Martin Steel

    Frm earlier: £25bn welfare cuts? Hilton’s plan is absolute nonsense, writes @IPPR’s @RDarlo: //t.co/tjEo7IqB

  23. Richard Darlington

    Friday teaser on @leftfootfwd – Can you cut £25bn from the welfare bill? Try & do-it-yourself: //t.co/qS6dcyjD

  24. BevR

    RT @leftfootfwd: £25bn welfare cuts? Hilton’s plan is absolute nonsense //t.co/Q7ENOR26

  25. Richard Darlington

    Prof Mike Brewer, says a £10bn cut would be “incredibly difficult” and £25bn “virtually impossible” – try it yourself: //t.co/JvcvWD1K

  26. Brnch Sec

    Frm earlier: £25bn welfare cuts? Hilton’s plan is absolute nonsense, writes @IPPR’s @RDarlo: //t.co/tjEo7IqB

  27. EB Bugler/rtwtr@NE36

    £25bn welfare cuts? Hilton’s plan is absolute nonsense, writes @IPPR’s @RDarlo: //t.co/tjEo7IqB

  28. Richard Gadsden

    WTC, replaced WFTC, which replaced Family Credit – and before that, there was Supplementary Benefit.

    In-work benefits go all the way back to National Assistance in 1948

  29. Alan Cowan

    welfarecuts nonsense //t.co/T4RMgSOV

  30. Anonymous

    Oh they’ve got that, they’re working to set up “Universal” benefit to harshly punish anyone who tries that. And they’ll still, in many cases, have to still be visiting the JobCenters and begging not to be sanctioned while working…

  31. John Böttcher

    Pick your £25bn welfare cuts now! Cut the cake! //t.co/abq1ZY40

  32. Chris Salter

    RT @leftfootfwd: £25bn welfare cuts? Hilton’s plan is absolute nonsense //t.co/ppmQhUgW #ppnews #wrb

  33. WorkfareProtest

    RT @leftfootfwd: £25bn welfare cuts? Hilton’s plan is absolute nonsense //t.co/ppmQhUgW #ppnews #wrb

  34. OccupyOlympics2012

    RT @leftfootfwd: £25bn welfare cuts? Hilton’s plan is absolute nonsense //t.co/ppmQhUgW #ppnews #wrb

  35. @GrannyWils

    RT @leftfootfwd: £25bn welfare cuts? Hilton’s plan is absolute nonsense //t.co/BoCRRPhF

  36. TheCreativeCrip

    RT @leftfootfwd: £25bn welfare cuts? Hilton’s plan is absolute nonsense //t.co/ppmQhUgW #ppnews #wrb

  37. Anonymous

    State pension isn’t welfare.

    The state pension was paid for many times over up front.

  38. Anonymous

    One way the benefit bill could be reduced is to regulate certain areas more i.e. the private rented sector, where by caps can be put on what they charge, this would gradually feed through the system as a saving.

    =============

    The problem is that there is a disconnect in your argument from the cost to provide, and the cost of the service.

    Now how are you going to cap Local Authorities and Housing associations, because under EU law, you have no choice or all BTL landlords will be winning massive damages for illegal state aid.

  39. Anonymous

    So why did Brown implement socialism for the banks, rather than capitalism and letting them fail?

  40. Tax Commission proposals would cause £120 billion of extra cuts | Left Foot Forward

    […] See also: • £25bn welfare cuts? Hilton’s plan is absolute nonsense 17 May […]

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