The governments welfare room bill and the introduction of universal credit has been very much in the news in the last week. Now clearly some simplification of the welfare benefits system is need as it is too difficult for claimants to understand. But I feel that the welfare room bill should lead us to answer some more fundamental questions.
Firstly why is the welfare bill so high in this country it is not as some right wing commentators say due to lazy welfare claimants. It is due to the low wage neo liberal economy with very high unemployment.
A major part of the welfare bill is tax credits this is where working class taxpayers subsidize the low wages paid by employers and the top up the low wages up with tax credits.
Also the enormous housing benefit bill which is due to the high rents charged by private landlords and the lack of cheap social housing available.
So why we need some reform of the welfare system we also need a new economy.
Public investment, co-operatives backed up by a guaranteed minimum income for everbody in or out of work.
But most importantly we need cheap accommodation,with a massive council flat and house building programme and the introduction of rent controls for private landords.
To get rid of poverty in this country we need a clear break from neo liberalism and an economy based on public investment