Public sector spending cuts and tax and benefit changes

public sector cutsThe government is starting to implement its strategy to change benefits claims

The government is launching a new strategy which will hope to see less people claiming benefits. There are tens of thousands of incapacity benefit claimants who are going to be reassessed and estimates suggest that one in three may be deemed fit to go back to work.

Hundreds of soldiers are going to receive redundancy letters as the Armed forces also receive spending cuts. Employment Minister Chris Grayling has defended the government’s changes to incapacity benefit, which may see up to 500,000 people moved onto the lesser jobseekers allowance immediately.

He said: “The evidence clearly shows that there are people out there who, with the right support, will be able to gain employment and say goodbye to a life on benefits. For too long millions of people have been written off with no real support to get back into sustained employment. The changes we are making to the benefits system will ensure that those in genuine need get more support and those who could and should be working and given the opportunity to do so. A life on benefits is no longer an option.”

The downside is the amount of working families that will be hit by the cuts, with the threshold for child benefits been £44,000. However it is a good sign for graduates that are still out of a graduate job, because the government plans to give more help towards job seekers in a bid to reduce unemployment throughout the UK.

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