Benefit claimants overpaid £2.6bn

**rory_20_uk** · 02-01-2007, 16:36

Great, just great. Apparently the government has managed to give out £2.6bn to the wrong people. But no fear! This rate is down from levels in 1997/98 where over £5bn went missing. Link

£2.6bn is 2.2% of the total money that is given away annually in benefits. So according to my rather bad maths the total money is (2.6*100)/2.2 billion About 118 billion pounds a year.

How is this sustainable? What could be done in the UK if that money were freed up (or more to the point - what couldn't be as that would be fewer things)?

This country needs to simplify the tax and credit system (to help the fraud which claims another couple of billion a year) and drastically reduce this astronomical amount of money that get given away.

Does not one in power equate the demise of the manufacturing sector with the fact that the utterly unskilled in the society are given more money for not working than is an economically viable wage for doing work that fits their "skill profile"? And if this was seen to be the end result of bieng unskilled I'd bet that far fewer people would end up this way.

But with our current wonderful democratic system the incentive is to pander to the masses and to sort this issue out would cost votes!

Best ignore it then...

**BDC** · 02-01-2007, 16:40

We could have a very nice education and health system for £118b a year extra. Or demolish and fix all those messed up estates.

And you have pinned the issue with democracy. It'd work so much better if eveyone was honest, hard working, etc.

**Grey_Fox** · 02-01-2007, 17:16

I suppose you would be able to afford a proper military besides having to rent bases and ships...

**Scurvy** · 02-01-2007, 17:22

Originally Posted by rory_20_uk

£2.6bn is 2.2% of the total money that is given away annually in benefits. So according to my rather bad maths the total money is (2.6*100)/2.2 billion About 118 billion pounds a year.

thats a disgrace.

This country needs to simplify the tax and credit system (to help the fraud which claims another couple of billion a year) and drastically reduce this astronomical amount of money that get given away.

The system needs to be simplified, but i suspect (and im no expert on su hthings) that it is difficult to reorganise the system and create a sustainable and wroking simple system - money and finances tends to be complicated...

**rory_20_uk** · 02-01-2007, 17:38

Some countries have a tax system that is 0% tax up to a point, then a set rate after that point. Extremely simple.

Ours has different bands, then a multitude of ways you can claim tax credits for all sorts of things. This makes the forms for tax longer year on year, and of course a small army of people to go through them. And as the complexity increases, so does the potential for errors - either unintentional or intentional.

**BDC** · 02-01-2007, 18:45

Originally Posted by rory_20_uk

Some countries have a tax system that is 0% tax up to a point, then a set rate after that point. Extremely simple.

Ours has different bands, then a multitude of ways you can claim tax credits for all sorts of things. This makes the forms for tax longer year on year, and of course a small army of people to go through them. And as the complexity increases, so does the potential for errors - either unintentional or intentional.

It's odd, you speak to nearly anyone from whatever part of the political process, and having a high 0% tax level, followed by a single higher one seems to have a lot of support. Certainly allowing the poorest to keep most/all of what they earn. Would reduce this ridiculous social bill somewhat.

I think the corruption is less of an issue, rather more the actual amount spent.

**rory_20_uk** · 02-01-2007, 18:59

Brown's Treasury seem to take complicated tax as a matter of faith. Link

I know it's the Torygraph but it was the only link I could find. The Treasury webside link doesn't work...

**Idaho** · 02-01-2007, 19:30

I think we should all get £15k a year tax free. Then pay a flat rate of 30% on the next £15k, 45-55% on the rest. Also get rid of NI. It's basically the same as tax anyhow.

**Pannonian** · 02-01-2007, 17:37

Does anyone know whether the 2.6bn is net or gross? It was my impression that one of the problems with the current system is that, in addition to money being paid to the wrong people, people eligible to benefits aren't claiming it due to ignorance, and that the second number is bigger than the first.