Those who save suffer most outside the benefits system (From The Argus)

Those who save suffer most outside the benefits system

3:22pm Friday 30th July 2010 in

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It is as a result of the Government and councils creating un-level playing fields that a good many otherwise honest people resort to benefit cheating and tax avoidance (Letters, July 10). For example, husband and wife friends of mine of pensionable age receive no state benefits. Since retirement the wife has taken on two cleaning jobs to help pay the £1,200 council tax due on their home.

Due to the recession she has recently lost one of these jobs and the second has cut the hours. She has been unable to find other work.

Of course, had the couple not been thrifty saving for their retirement, they could, like the many who have had plenty of money and spent it, applied for benefits. But they have just (only just) too much money in the way of savings to do that.

Like thousands of others across the country they are asset rich and income poor. Their savings are required to pay for the upkeep on a property they struggled to buy through their working years. The savings are rainy day savings, money for emergencies.

Unlike governments and wastrels, they spent according to their means and, unlike people living in rented property, and MPs getting every allowance imaginable, there is no one else paying for their repairs and improvements.

Secondly, sight should not be lost of bonuses/emoluments paid to the executive staff on councils throughout the country. These people, who are already receiving huge salaries and contributions to their pensions from the public purse are, in addition, being paid bonuses larger than many of their underlings receive each year to live on.

Councillors, I would add, who are receiving high salaries, can also join a very favourable local government pension scheme.

So when it all boils down, cutting benefit fraud and tax avoidance would make no difference to tax payers. Savings would just evaporate on more Government and local council extravagance, which of course would mean “higher” bonuses all round for those with a hand in cutting the black economy.

It is what is known as heads they win, tails we lose.

Dave Bonwick
Oakdene Close, Portslade