LibDems offer new "back-to-work" plans (Westminster and City of London Liberal Democrats)

Westminster and City of London Liberal Democrats <info@westminsterlibdems.org.uk>

LibDems offer new "back-to-work" plans

August 4, 2007 6:55 PM

LibDems have concrete plans for government

A plan to help thousands of people in Westminster back into work and off benefits has been welcomed by local Liberal Democrat campaigner Neville Farmer.

The national LibDem plans include:

reforming the massively complicated tax credits system to make it simpler and to end the massive overpayments
increasing child benefit by around £5 a week for families in Westminster
a "pupil premium" that will boost schools in Westminster that serve children from more deprived backgrounds
immediately restoring the earnings link to the basic state pension to ensure the income of older people does not fall further behind that of the rest of the population

Neville said, "It might surprise some people to learn that, under Labour, the gap between rich and poor is actually wider than it was even under Margaret Thatcher. Whilst he was the Chancellor, Gordon Brown allowed the tax burden to go up and up for those on the lowest incomes.

"He gave us the massively complicated tax credits system that is riddled with errors. In the two local parliamentary constituencies, a total of £3.7 million was overpaid to residents in the last financial year, which the Treasury then demanded back.

"Yet at the same time, the tax credit system is a disincentive to people on benefits to work. Our proposals to tackle poverty will ensure there is a greater incentive to work and save for retirement.

"By scrapping council tax and lowering the rate of income tax, we will ensure that when people come off benefits and start work, less of their hard earned money is taken from them by the government.

"Furthermore, the additional £5 a week for all families with children will be a significant helping hand to many people living here in Westminster.

"Our proposals for additional funding for children from the most deprived backgrounds going straight to schools will give them a better start in life. With a better education, they are less likely to become dependent on benefits in later life. That helps everyone.

"Council Tax falls most heavily on those on low incomes and I am delighted to see that the Liberal Democrats are calling for it to be scrapped and replaced by a fairer local income tax, based on ability to pay.

"The incomes of many elderly people have fallen behind that of the rest of the population. So I fully support the proposal to link, immediately, the basic state pension to the average rise in pay.

"In a wealthy country such as Britain, we should not have such a huge gap between rich and poor as we have now under Labour.

"Our plans will go a long way to closing the poverty gap by giving people a real incentive to work. They will end some of the penalties imposed on people who have saved for their retirement.

"The proposals will be debated and voted on at our national conference in September and, personally, I hope they pass."