Adonis Diaries

Posts Tagged ‘food banks

Welfare budget is spent on in the UK?
Joanna Choukeir Hojeily shared Jon Leighton‘s photo.
Ok, I can't keep my gob shut any longer. I'm sick to death of seeing posts on Facebook about benefit scroungers. Do you know the figures? Because if you did you might see it in another light.</p> <p>Did you know that only 3% of the benefits budget goes to people seeking work? 53% is pensions and other related old age benefits, 18% is Housing Benefit (which currently goes directly to landlords) 18% is working tax credits, and the rest disabled benefits and other bits and bobs. (And by the way, the Government figures say the fraud rate for disabled benefits is 0.3%)</p> <p>In fact, the majority of folks claiming housing and council tax benefit ARE IN WORK. </p> <p>I could write a bloody essay on this because I deal with it everyday. Our benefits budget is not out of control. According to the OECD Britain's benefit bill per head is nowhere near as generous as half the countries in Europe. (And unemployment benefit is particularly stingy compared to most)</p> <p>The vast majority of folks just want to get on but minimum wage jobs are not paying enough. (This might explain why at work we're seeing working people going to bloody foodbanks every week.)</p> <p>This shitty government is turning people against each other. And it's totally unwarranted. Yes, welfare needs reforming but you don't do that by kicking people out of their homes, stigmatising them so that they get spat at in the street and driving them to suicide. - these have all happened so far.</p> <p>In the last two years 80% of people applying for housing benefit were all working. We can reform welfare by bringing in a living wage so that people don't have to claim benefits to get by. At the moment the welfare budget is subsidising low pay and private landlords on a grand scale. </p> <p>When you see a post that puts the boot into benefit claimants, think twice before you like it because let me tell you, we are ALL only three mortgage payments away from disaster.</p> <p>(If anyone wants the sources of the figures I have quoted, I will only be too happy to provide them)</p> <p>I've attached a pie chart from 2011 to give you an idea. Figures will have changed a bit.
I can’t keep my gob shut any longer. I’m sick to death of seeing posts on Facebook about benefit scroungers.

Do you know the figures? Because if you did, you might see it in another light.

Did you know that only 3% of the benefits budget goes to people seeking work?

53% is pensions and other related old age benefits,

18% is Housing Benefit (which currently goes directly to landlords)

18% is working tax credits, and

The rest is spent on disabled benefits and other bits and bobs.

(And by the way, the Government figures say the fraud rate for disabled benefits is 0.3%)

In fact, the majority of folks claiming housing and council tax benefit ARE IN WORK.

I could write a bloody essay on this because I deal with it everyday.

Our benefits budget is Not out of control.

According to the OECD Britain’s benefit bill per head is nowhere near as generous as half the countries in Europe. (And unemployment benefit is particularly stingy compared to most)

The vast majority of folks just want to get on, but minimum wage jobs are not paying enough. (This might explain why at work we’re seeing working people going to bloody “food banks” every week.)

This government is turning people against each other. And it’s totally unwarranted.

Welfare needs reforming but you don’t do that by kicking people out of their homes, stigmatizing them so that they get spat at in the street and driving them to suicide. – these have all happened so far.

In the last two years, 80% of people applying for housing benefit were all working.

We can reform welfare by bringing in a living wage so that people don’t have to claim benefits to get by. At the moment the welfare budget is subsidising low pay and private landlords on a grand scale. (Sort of allowing the rich businesses to get richer from government pocket?)

When you see a post that puts the boot into benefit claimants, think twice before you like it because let me tell you, we are ALL only three mortgage payments away from disaster.

(If anyone wants the sources of the figures I have quoted, I will only be too happy to provide them)

I’ve attached a pie chart from 2011 to give you an idea. Figures will have changed a bit.

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Is financial crisis measured by Xmas food handouts? Are we in big trouble?

Christmas food handouts double as millions face ‘financial precipice’

What interest rate has to do with economic recovery? Interest rate is still zero (in the USA) and the economy has not recovered since 2007. Resolution Foundation says: “Debt-ridden households could kill off economic recovery when interest rate rises…” Should we expect a worse case scenario sooner?

The number of people who will turn to food banks for sustenance is expected to double this Christmas, as a new report warns that millions more families face a financial “precipice” due to high personal debts, flat-lining wages and future interest rate rises.

With 3 new food banks opening every week in the UK, the charity the Trussell Trust (that oversees Britain’s 292 emergency outlets), says it expects to feed 15,000 people over the Christmas fortnight alone, almost double the number last Christmas.

Many hungry people visit food banks: they refuse to accept free food because they think it carries a stigma.

Food bank

Volunteers at food banks aim to tackle ‘hidden hunger’ – Photograph: Christopher Thomond for the Guardian

 and y published in The Observer, Dec. 22, 2012  under ”

Christmas food handouts double as millions face ‘financial precipice'”

“A study published by the Resolution Foundation, an independent think-tank  says that millions of households with low to middle incomes will be pushed close to the edge if they are unable to reduce their debts, including mortgages, before the cost of borrowing returns to more normal levels.

Volunteers who are giving up part of their holiday to help run food banks – from students to pensioners and representatives of local businesses – will be out in record numbers across Britain this week, distributing food to those who cannot afford a decent Christmas. Their aim is to tackle “hidden hunger” – that affecting people who refuse to accept free food because they think it carries a stigma.

The Resolution Foundation report exposes how millions of families, unable to pay off debts, are facing a crisis if interest rates are pushed up in coming years to keep inflation down.

Matthew Whittaker, senior economist at the Resolution Foundation and the author of the report, On Borrowed Time?, said: “Debt levels are a major concern for a substantial number of families struggling under a burden of repayments, even as things stand.

“There is a very real prospect that borrowing costs will rise more quickly than incomes and that lenders will become less flexible over repayments. Many households are already in a very exposed position, even with interest rates on the floor, so even small changes in the financial outlook could have a dramatic effect.

“All this threatens to make the burden unbearable for many debt-loaded households, particularly those on lower incomes. This would be dangerous at any time, but it looks especially so in the current era of frozen wages, under-employment and faltering living standards.”

Figures published last week by the Bank of England showed that 3.6 million households – 14% of the total – now spend more than a quarter of their income on debt repayment, including mortgage costs. The Bank also says that up to 1.4 million households (12% of those with mortgages) are in special measures with their bank, having asked for temporary deals from their lenders.

The RF report shows that debt is distributed unevenly across income groups, with those in the poorest 10% of households spending on average 47% of their monthly income on debt repayments, compared with 9% for the richest 10%.

It also highlights how 2.4 million households with a mortgage (one in five) are spending more than 25% of their gross income on mortgage repayments alone – at a time when interest rates are at just 0.5%.

Before the debt boom of the 2000s, only 15% of households were in this position, even when interest rates were as high as 7%.

The debt problem is likely to be all the more serious for struggling families because wages and household incomes are likely to stagnate over the next few years. The RF suggests that the average full-time wage will rise no higher in real terms than its 2000 level of £26,200 until at least 2017 – down from a peak in 2009 of £29,000.

Few economists expect interest rates to rise in the near future – almost certainly not in 2013 – but after that the Bank of England would be under pressure to raise rates to see off the threat of inflation were the economy to show signs of recovery.

The report notes the delicate balance that the Bank – under its newly appointed governor, Canadian Mark Carney – will have to strike between controlling inflation through raising interest rates and creating a risk of mass mortgage default and increased bankruptcy rates, which could combine to derail any nascent recovery in the economy.

The report says: “The prospect of interest rates rising and forbearance [special arrangements people set up with banks to help them through] being removed while incomes continue to stagnate heightens the risk of future defaults.

Such an outcome may yet slow down, or stall, economic recovery: at some tipping point the micro issue becomes a macro one. In this eventuality, we may find that the green shoots of recovery just sprouting in the UK economy prove to be living on borrowed time.”

Increase small and inexpensive celebrations: There are many occasions to celebrate, and it is celebrating the good positive attitudes that extend a chance to survive the gloomy days ahead.


adonis49

adonis49

adonis49

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