Welsh Political News

Welsh Liberal Democrat supports plans to put Wales back-to-work

A plan to help thousands of people in Wales back into work and off benefits has been welcomed by the Welsh Liberal Democrat Social Justice spokesperson, Peter Black.

The plans, launched by the Liberal Democrats this week include:

Reforming the massively complicated tax credits system to make it simpler and to end the massive overpayments;
Increasing child benefit by around £5 a week for families in Wales;
A “pupil premium” that, if adopted by the Welsh Assembly Government, will boost schools in Wales serving children from deprived areas by bringing funding in the most needy state schools up to private school levels;
Immediately restoring the earnings link to the basic state pension to ensure the income of older people does not fall further behind that of the rest of the population.

Mr. Black said, “Under Labour, the difference between rich and poor is wider than it was under Margaret Thatcher. As Chancellor, Gordon Brown has allowed the tax burden to go up on those with the lowest incomes.

“He has given us the massively complicated tax credits system that is riddled with errors. Here in Wales £85 million was overpaid to residents in the last financial year which the Treasury then demanded back. In my own region, the Treasury are trying to claw back £3.8 million from the residents of Neath Port Talbot, £4.1m from those in Bridgend and Ogmore and £6,1m from people in Swansea and Gower.

“Yet at the same time, the tax credit system is a disincentive to people on benefits to work. Our proposals to tackle poverty will ensure there is a greater incentive to work and save for retirement.

“By scrapping council tax and lowering the rate of income tax, we will ensure that when people come off benefits and start work, less of their hard earned money is taken from them by the government.

“Furthermore, the additional £5 a week for all families with children will be a significant helping hand to many people living in Wales.

“Our proposals for additional funding for children from the most deprived areas going straight to their schools, if adopted by the Welsh Assembly Government, will give them a better start in life. With a better education, they are less likely to become dependent on benefits in later life.

“Council tax falls most heavily on those on low incomes and I am delighted to see that the Liberal Democrats are calling for it to be scrapped and replaced by a fairer local income tax, based on ability to pay.

“I meet many elderly people throughout Wales and I have seen how the income and standard of living of a large number of our senior citizens has fallen behind that of the rest of the population. Our proposals will help to put that right. With these policies, the Liberal Democrats are declaring war on inequality.”