I have been away in the North of England - you know, the wild country 200 miles beyond Potters Bar - for the last 2 weeks so I have had less time to comment on the day to day happenings of this tortured country of ours. Today, there is much hand wringing by the charity Shelter about potential homelessness in and around London. With the government's cap on housing benefit at £400 per week for a 4 bedroom house, Shelter tell us that no benefit claimant will be able to afford even a 2 bedroom house or flat any where near London. I doubt if this is true. At present - particularly in the London area - we, as tax-payers, have been shelling out vast sums of money to private landlords and encouraging them to charge high rents on their properties. If someone in the London area with a job and a family possibly and earning £30,000 per year cannot afford the high rents in Central London and has to commute, why, in the name of God, should we be paying those on benefits to live there? The Daily Mail and other newspapers regularly regale us with tails of benefit claimants with huge families living in massive houses in expensive parts of London and costing perhaps £2,000 per week in rent, which with other benefits equates to some massive sums - upwards of £150,000 per year, in some cases, being handed out. For someone in work to be earning enough to have £150,000 after tax they would need salary levels near £300,000 per year - that is banker remuneration. There was recent case of an unemployed bus conductor who moved from a £900 per week house in Brent to another in a better area that cost £1500 per week because Brent was a bit too downmarket. Now, we are in cloud-cuckoo-land. If there is going to be this vast exodus from Central London as benefits cuts take effect, it can only mean that rents will fall and by implication it suggests that high rents are being maintained because the state is paying the bills. High rents in London are one big problem but nationwide there is exploitation of the system through fraud and complacency. In many households with generational reliance on benefits there is often an aggressive belief in their entitlement. With arrogant disregard for the realities of financing the system they assume that they should be paid what ever they demand for ever.
It is right and proper that George Osborne has set limits on benefit payments at £400 per week for rent and a total of £26,000 per year on total handouts to a single family. That should concentrate the minds of the irresponsible - yet otherwise bone idle - claimants who knock-out kids with total abandon, secure in the knowledge that they will get yet more money from the state. Even £26,000 per year is generous since an employed person would need about £38,000 of gross income to have that £26,000 net. The benefits system is suppose to be a safety net not a carte blanche free for all.
Now, George, what about the bankers; the 75,000 people in the city of London who are paid over £100,000 per year via generous salaries and bonuses, using our money? And then how about people like Sir Philip Greene paying their real tax dues - after all the super rich can afford it.
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