Formal Response: Future of the Welfare State
- Mar 20, 2024
- 1 min read
"This report rightly highlights that the welfare state is not all about unemployment, but also how our citizens are taxed to fund national support schemes and projects."
We are pleased to share with you a formal response from the Party Chairman, Richard Holden MP, to our consultation on The Future of the Welfare State (23#5), completed in January.
John Hayward, CPF Manager
Think
I receive child benefit for my children, but pay it all back in tax.
Why the bureaucracy of two systems?
The benefits/tax system creates cliff edges where earning a little extra results in much bigger loss of benefits both in money and benefits in kind, i.e. things provided free to people on benefit.
This is wasteful and easily solved.
Replace benefits with negative tax.
Everyone has tax allowance based on their circumstances, the minimum for them to live.
So, instead of people filling in different forms for benefits and tax returns, people just fill in tax return, so civil servants only review one form, reducing number of civil servants required, and from this one form, the tax allowance is…
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