Should the middle classes be entitled to benefits?

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Rebecca Atkinson
Fri, 23/10/2009 - 12:05

The middle-classes should no longer be entitled to receive benefits, such as the winter fuel payment and statutory maternity pay, in order to avoid tax hikes, a think tank has suggested.

A report from Reform accuses middle and high earners of being a drain on the welfare state.

Instead of being independent of public welfare, the middle classes “use their political weight to extract ‘their fair share’ from government, through universal benefits and near-free higher education”, the report states. It claims this costs the government around £31 billion a year and poses a risk of higher taxation for all.

Benefits on Reform’s hit-list include: child benefit, child and working tax credits, the winter fuel allowance and statutory maternity pay. It suggests abolishing these “benefit gimmicks” and migrating individuals from the state pension onto personal protection accounts.

Do you agree? Should anyone earning above a certain amount be independent of public welfare? And, if so, what should the cut-off point be?

Have your say below...

GuestThe Hon Ron (not verified):

It all depends where you set the middle class level. I understand the 'Reform think tank' that are recomending this approach, put the middle class level at and above £15000 per ann.
Fine for them I bet they are all well above that income level. So thats all right then, the Im alright Jack syndrome again.
I understand they are recomending withdrawing, winter fuel allowence, bus passes, attendance allowence, free television licences that specifically impact the senior citizen, as well as the other family and child benefits.
So again in the latter years of ones life it is deemed fit to clobber the pensioner who has worked hard and saved prudently all their lives.
It doesnt take much to get to the £15000 proposed middle class threshold with state pension, a minor company pension and a small private pension and then one is deemed by this bunch of twits to be middle class ready to accept the pain they wish to apply. What a disincentive to make provision for ones senior years.

Lady Penelope (not verified):

I concur with the previous comments. Having worked hard all my life and done the right thing to provide a little above my State Pension which I am now living on having lost my job last December. I had not wanted to finish work but I was made redundant and have been unable to secure another position, hence I am now living on pensions which in no way amount to what my salary was, therefore I really value my travel pass which is so useful having paid all my life to travel previously. Also given the price hikes in gas and electricity the fuel allowance will help to offset this somewhat and feel that again as I have worked hard all my life this should not really be denied people such as myself.

The the powers that be are really out of touch with people such as ourselves in that their pensions are gold plated and inflation proofed so no matter what they will be comfortable. We have done our bit so we should not be denied these very small perks in our old age.

Why should the middle classes be hit yet again. We are not wealthy,many of us are just above the benefit,penson credit limits, these folk get everything. The most sensible way to do it is through the tax system. In fact anyone who pays the higher rate of income tax should not get the fuel allowance,free TVlicence and bus pass.There would be no need to create any more bureaucracy to do means testing. If you pay tax at 50% you don't qualify,simple as that!  Make that the cut off point.I am fed up of being thought of as well off  with a small pension and a few savings. We have worked hard and deserve some perks at 60+  I would also suggest that if pensioners are carrying on working beyond retirement age,then they should not qualify until they stop work.

Child Benefit was introduced after the war as an incentive for couples to have children.

It begs the question - why does it still exist?  Is there a childbirth crisis?

If people are considering having children, surely they're doing it because they want to raise a family - not because they're thinking about child benefit, children's tax credit, working families tax credit, baby bonus etc etc...

Let's get back to a situation where people are having kids because they can afford to, not because the government incentivises them to...