Although according to this political test I’m some kind of Commie, I do think it is good to incentivise employment. The proposed changes to Council Tax benefit will not do this – but instead seem set to make some of the poorest in society still worse off, as reported in this Observer piece which highlights opposition to the proposals from a Tory-run district council.
Whereas now the government refunds the full cost of this benefit, from next April it will instead give local authorities 90% of the amount to administer themselves. Because they are required to safeguard certain groups, such as the elderly and disabled, the reduction will fall heavily on those who fall outside these categories, including low-paid workers who will see even less reward for their work.
Grant Shapps claims that:
“Our reforms will localise council tax support and give councils stronger incentives to support local firms, cut fraud, promote local enterprise and get people off the dole.
Of course while some people have a highly developed work ethic, others will remain idle if they can. But these cuts will affect people who would love to work, but can’t find a job, and others who do in fact work, but don’t get paid much.