Basic standard of living vs. Long-term Incapacity Benefit

Do you earn enough for a basic standard of living?

The Minimum Income Standard for the UK shows how much money people need, so that they can buy things that members of the public think that everyone in the UK should be able to afford. Take the test at the link: http://www.minimumincome.org.uk/

Screen Shot 2013-04-05 at 08.28.42Now compare ‘minimum income standard’ with what someone on long term sickness/disability benefit actually gets. The hypothetical person has no realistic prospect of returning to work in the near future, yet their compensated income isn’t even subsistence income.

But whilst the public may think that someone on a wage should be able to afford these things, you may not. It could be said that they can do without alcohol and they don’t need to spend money on social activities because there are things that can be done for free. Someone can quite rightly claim that clothing isn’t something that has to be purchased every month either, especially if you’re careful with your clothes.

It is often mis represented that the case for higher benefits (in this context) is wanting parity with an earning standard of living. This was an exercise in demonstrating the current wide disparity by showing that £115 per week is the gap at two extremes (within the context). However the figures proposed at minimum working/earning standard of living are not wild or fanciful. The reality for all disabled and long term sickness benefit recipients is that the benefits are barely meeting their needs, let alone even partially their desires.

I think that the debate should be where between the two extremes should the income be set. So what is appropriate substance levels, bearing in mind that the disabled person has no fair reason to be excluded from normal participation in society? Also bearing in mind the difference between an Able bodied job seeker, vs what we are talking about: incapacitated through sickness/health or disability.

For the job seeker, a temporary exclusion from normal participation is acceptable due to the temporary nature of unemployment relative to employment, and the motivation that exists there in; however the long term sick/disabled faces exclusion from participation in cultural activities, or from affording enough variety in food and social activities, and the motivation factor is redundant in this respect.

The disabled or long term incapacitated person will also have generally higher costs of living associated with their incapacity. There also comes a point where all clothes eventually do fall apart, no matter how careful one is, or become tatty/ragged, yet the less than substance existence provides not much leeway for replacement of items clothing or household that break or wear down.

For international comparison, the income for disabled/sickness benefit in UK is 1/4 of that in Canada, and 1/2 of the European average.

And final, all social security will be uprated at 1% for next three years. As the benefits barely cover cost of all essentials, this means a very real drop in income as inflation increases.  Compared to someone on median wage of £21k, someone on the income provided here has currently £96pw. In fixed cash terms, after three years that will be equivalent to £66pw.

The point being: there is very little “fat” left to cut. Literally in some cases!

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