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The Modern Welfare System

Tax Credits and Welfare Bills are under scrutiny...

The Modern Welfare System

George Osborne is going ahead with plans despite adversity in House of Lords

Tessa Bundy

W!ZARD News Author

George Osborne is pushing for a change in the modern welfare system of this country to create the low tax, low welfare, high wage society that the Government wants.

The modern form of tax credits was implicated by former Prime Minister Gordon Brown and were designed to help working people top up their income to make ends meet. Thousands of families now benefit and rely on it to secure their household incomes, the changes would leave them with uncertainty in their daily lives.

Millions of people, including senior Tory and Labour party figures have voiced their anger to David Cameron, trying to persuade him to do a U-turn on the plans, saying they should be helping the poorest in society instead of hindering them. John McDonnel - the shadow chancellor said that he wouldn’t hold a change of heart against him, as it is doing best for the people of the country.

The proposed changes would see the families that rely on tax credits lose up to £1,300 a year, sparking criticism that the proposed living wage implications will instead give the low income more in the long run. Overall it would mean that working couples will see an increase overall in their finances.

The House of Lords - where the conservatives don’t have majority support - have voted to hold off George Osborne plans by 17 votes, this proved very unpopular in the Commons because the House of Lords hasn’t voted against the government in policies regarding money in 100 years. This has caused David Cameron to express his anger that the unelected body of peers can heavily influence and undermine key government policy that has been voted for by the elected body of MPs, and asks the question is our country is becoming more and more undemocratic.

George Osborne is going to continue to go ahead with his plans to reduce the amount the country spends in welfare, his long term plan is to make the country live within their means and create a budget surplus by the end of this parliament. Although tax credits will use millions of pounds a year, it is not vital and savings can come from other places.

Whatever happens this week has been damaging to the Conservatives but they are determined to complete their plan and reduce the welfare bill.

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