Have you noticed how most policies that the Conservatives roll out these days always seem to come with the tag line “most people will be better off” or “only a few people will be adversely affected by the changes”?
It happened with the tax credits cuts before that plan was abolished and it happened again with the cuts to ESA payments and indeed with the cuts to PIP before the Government did a complete U-turn on that too.
Well now it’s happened again with the imminent changes to Pension rules and the increase to national insurance payments due to come into effect on 6th April.
From 6th April 6 million workers will see up to £37 cut from their wages due to a 1.4% increase in their national insurance contributions. This will give the Government an extra £5.5 Billion per year.
In line with this move the state pension system will be simplified and here is that phrase again as written in the Guardian article on the matter
“The government said the “vast majority” of affected employees would end up receiving more state pension under the new scheme as a result of the changes.”
– The Guardian
The implication is that some people won’t receive any increase in their state pension under the new scheme as a result of the changes and will thus be up to £37 a month worse off with no end benefit.
So like the tax credits, ESA and PIP changes before it, we have here, with the Nat.Ins/Pension changes another policy that will see only ‘most people‘ better off in one way or another (even if, with the Nat.Ins changes, people won’t see that benefit until they retire) but sod the people who won’t be better off, they can take the hit…apparently. Whilst some will see a better pension as a fair trade off it does mean a real wage cut now, at a time when many people can ill afford a pay cut.
The problem for the Government though is with so many policies (it’s not just Tax Credits, ESA, PIP, Nat.Ins. policies) affecting ‘some‘ of the workers that eventually enough people will be caught up in taking these hits against their wallets that suddenly the Government will find more than enough people are baying for blood including those from so-called middle England.
The Conservative Government with every policy change are hitting the poor, the working poor and as time goes on will start hitting middle income earners more and more and if you believe that its possible for them to recover from the mess they are presiding over as our previous article shows, you have to think that if they lose middle England then it really will be good night for the Tories.