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‘Welfare for wealthy’ has to end, says senior Tory

Nicholas Cecil
30 Apr 2009


Billions of pounds of “welfare for the wealthy” should be abolished, a senior Conservative MP argued today.

David Davis, the former chairman of the Commons public accounts committee, proposed spending cuts which would hit many traditional Tory supporters. They include ending child benefit for the better-off and replacing winter fuel payments and free TV licences for the elderly with help for poorer pensioners.

Mr Davis also said that David Cameron should scale back the upgrade of the Trident nuclear deterrent if the Tories win power and proposed a public sector pay and recruitment freeze which would cancel senior civil servants' bonuses and cut Cabinet ministers' £141,866 salaries and MPs' expenses.

The former shadow home secretary, who resigned to campaign on civil liberty issues, laid out the Tory Right's views on the scale of cutbacks needed to deal with Britain's borrowing binge, expected to be £175 billion this year.

Writing in the Financial Times, he said: “The choice we face is not between Labour growth in public services and Tory cuts'. It is between taking a grip of the public finances and watching our people's economic prospects, and our ability to afford decent public services, slowly dribble away.”

Reader views (21)

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Keith Price, an aspiring politician shouldn't put foot in mouth as often as you do - the last decade was under Labour rule. Plenty of time to fix it. You'll need to sharpen up a bit mate if you hope to survive debate with even half competent opposition.

- Rogan, Irving, 30/04/2009 23:50
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So Keith, if Labour have been saying it for decades why, after more than one of those decades in power have they not done anything about it?

In fact was it not the current government who introduced free TV licences for the over 75's and increased winter fuel payments?

- Phil, Surrey, 30/04/2009 17:56
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Keith - No they have not. Take a look at the manifesto, seems you need a refresh.

- Dave Davies, Basingstoke, 30/04/2009 17:39
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Mark from South East, I'm in full agreement with you over benefits for free-loaders but Nu-Labour are committing misfeasance in public office. Welfare for votes, homes for votes is a crime but guess what, nothing is being done!
But look what they did to Lady Porter on Westminster council.

- Mike, London, 30/04/2009 17:26
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More means testing, less incentive to save for old age, more Public Sector workers, more feckless people !

How about doing things like not paying mortgages for mansions held in a spouse's name, or not paying Legal Aid to criminal millionaires who have 'no assets'.

- Cap, London, 30/04/2009 16:49
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Kev from London,

The WifeSwap family was reported in numerous papers because of the value of the benefits they were receiving. yes they were receiving state handouts of around £ 35-40k per annum. The family they swapped with were holding down three jobs and they didn't earn anything near that. Fact!

No, I am in the tax industry and it is very obvious what is causing great holes in the public finances and the tax credit system is one of them. You cannot dispute my figures and resorting to puerile comments just shows up your lack knowledge.

The gold-plated pensions of the civil service et al., is something this country can no longer afford. Again there is general consensus that this is the case but you continue to bury your head in the sand.

- Mark, South-East London, 30/04/2009 16:23
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This has to be the first Tory who has admitted this faarcically obvious fact. Labour have been saying it for decades

- Keith Price, Luton, England, 30/04/2009 15:52
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Dave of Cumbria. Child benefit should not be a means of regulating the population or imposing one's personal views as to how many children families should have. It is aimed at ensuring every child gets a good start in life. It is hardly a child's fault if he or she is one of two, or five. You would be punishing the children for the decisions their parents have made (and in the UK you are free to have as few, or as many children, as you choose - and good thing too, if the insidious and evil population control policies seen in China and India are anything to go by). Perhaps it should be means tested but limiting it to the first two children in a family makes no moral or economic sense and would be poor policy. Also, if there was more affordable, state-funded childcare in this country,then perhaps families wouldn't need these credits as much. A full time nursery place in London can cost around £17,000 per year, per child. If the Government funded more state nurseries, they'd both create jobs for the people who would work there and save millions in tax credits. But then why solve a problem at source when you can just chuck money at it instead.

- Lindsay, london, 30/04/2009 15:21
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Mark, South-East London,wife swap!blimey, did you get the rest of your information as regards what may bankrupt this country from the Simpson's?

- Kev, London-UK, 30/04/2009 15:07
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I agree welfare for the wealthy has to end - and let's start with the second home allowances paid to MPs, household items such as patio heaters, barbeques, kitchen sinks, antique fireplaces, bath plugs, etc.etc. These claims are costing tax payers millions of pounds and Brown is on record as stating he "supported Jacqui Smith's claims".

- R.F., Yorks, UK, 30/04/2009 14:36
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"Cabinet ministers' £141,866".

Aren't they lucky they fall just below the £150K 50% tax scale. Not that Darling had that in mind when drawing up the budget at all!

- Frank, Home Counties, England., 30/04/2009 13:35
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Drop in the ocean. The two things that will bankrupt this country, if we ain't already, are 1) Civil Service (and similar) pension schemes and 2) the Tax Credit system.

Because of the interaction between tax reliefs and the tax credit system it is possible for somebody (who has children) to buy a van for £ 20k and within two years recive tax relief and tax credit payments, which exceed £20k!

Another thing about benefits paid to unemployed and their families is the amounts they receive should not exceed a "deemed" net pay. A few years back on C4 Wife Swap there was a family who were getting around £ 35-40k per annum in various benefits. That's like having a gross salary of nearly £ 60k and believe me even if even if they both worked and all their kids had jobs they wouldn't earn half that between them. A major overhaul of the benefits system needs to be implemented, to include discrimination against people from overseas until a reasonable (legal) length of residency has been established.

- Mark, South-East London, 30/04/2009 12:55
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I would want a cost benefit analysis of the potential savings vs. the cost of administering means testing before deciding if its a good idea. Why has no politician concentrated on benefit fraud and multiple identities? Technology must be available to confirm identity and ensure a person can only use his/her identity once. Let's declare war on fraudsters before picking on workers.

- Ab, London, 30/04/2009 12:12
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I'm pleased you mentioned MPs' perks, David, but don't forget the asylum system needs a massive overhaul. Legal aid sharks make a killing out of the appeals system.

About 90% of seekers have been suspect and come to the UK because we're such a soft touch. Airlines and other carriers should not let passengers to the UK on board without valid papers, which would curb the ruse of deliberately destroying documents nas part of the asylum claim.

- Jools, London, 30/04/2009 11:49
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To be absolutely fair, child benefit should be means tested but limited to each woman's first two children only, be paid initially to the mother and should apply to every potential benefitiary.

By this option couples would be 'forgiven' the 'occasional unwanted pregnancy', by this financial aiding from the state; and those couples wanting bigger families should then be fully prepared to bear the responsibility of funding them, before conception!

Like it or not, 'parameters of responsibility' like these are now long overdue!

- Dave, Cumbria, 30/04/2009 11:30
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We should also stop subsidising pensions for anybody earning over 100K. Why should the Taxpayer be augmenting pensions to people like Sir Fred Goodwin who has been hugely overpaid for years? Also I can understand that people who make their own fortunes deserve good tax treatment but why don't we raise Tax on those who inherit their millionaire status without any effort or merit?

- J Bark, Ruislip England, 30/04/2009 11:15
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Once we have a Tory Government who will re-emphasise the core principles of thios coutnry: justice, fair-play, decency, we will then be in a position to properly reform the welfare state.

I believe that all benefits/allowances should be means -tested. Just because people are of a certain age, does not mean that they cannot afford to buy a TV licene/buy a bus pass, etc..

There are far too many people who think they have the right to free services in this country. That mindset has got to change.

- Ian Gilbertson, Newcastle, 30/04/2009 10:54
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There any many benefits payable to Seniors that could be restricted to those on means tested benefits as many people (myself included) who are living on pensions can afford their own bus fares, gas and electricty, etc.

The financial well being of our wonderful country should come first, and we need a Government that can balance the books.

Restricting Senior's benefits to those on Pension Credit would ensure that help is given to those who really need it.

- John Jones, Westminster, 30/04/2009 10:30
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Has anybody considered the fact that these people have paid in probably millions of pounds of tax over their lives? I for one would start to question exactly why I bothered contributing. National Insurance is effectively a defined benefits pension and medical scheme that we all pay in to on equal terms so I can not see how denying anybody this would be fair.

- Mark, London, 30/04/2009 10:22
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Now that's talking sense,at last a party that seems to have at last grasped the fact of who the real benefit scroungers are in society,people like my boss who is a millionaires who claimed her child benefit for all the years she could and who even now having turned 60 claims her freedom pass etc etc in spite of having a Mercedes and a ferrari and a home in Hastings,the Canaries,and morocco,even she admits she doesn't need these benefits and mearly claims them because she is entitled to do just that.

- Kev, London-UK, 30/04/2009 10:00
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Instead of means testing the aged before paying them their winter fuel allowance and allowing them free tv licences, it would serve the tax payer better if every MP was means tested before paying them their over the top allowances, culling the apparatchiki and saving on their gold plated pensions and getting the education in this country up to speed so that pupils leave with aspirations and the ability to get a job instead of claiming unemployment.

- Patricia, LONDON, 30/04/2009 09:50
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