What does the Summer Budget mean for you?

When the Chancellor said both [IHT] allowances “can be transferred to your spouse or partner” I am not sure whether the word ‘partner’ refers exclusively to civil partners or includes people who live together and act as partners but have elected not to formalise that with a marriage or civil partnership. Equally I don’t know whether the Marriage (Same Sex Couples) Act 2013 means that the status of civil partnership will still be available for new same sex couples who choose not to enter a marriage. This relates to England & Wales – Scotland has equivalent legislation but Northern Ireland does not. The Chancellor’s words must surely embrace all who have formally married or entered into a civil partnership but not necessarily those who technically remain single. I wonder if this will be clarified in the near future.

Sophie, I heard some of the discussion with the IFS yesterday and he admitted they had not taken all the factors into consideration, including, among others, extended free childcare. I am wary of knee-jerk comments before the implications are fully digested and understood.

I am not in favour of wages being subsidised by the state – providing those who are genuinely in need of help are able to get it. To me that is what a welfare state should be about.

I recently watched a TV programme about immigrants and benefits.

2 of the claimants were men from Eastern Europe working here on low wages whose families remained at home. A Romanian was claiming benefits here and sending the money home to pay the wages of 2 men to renovate his home. When his employees had finished his renovations, he was going to bring them here and help them to exploit the benefits system. A second man sent the money home and it enabled his wife to set up a restaurant.

I am also not in favour of wages being subsidised and think the benefits system needs a good overhaul and the minimum wage needs to be a liveable wage for full time employment.

It is often overlooked that many people have a low income because they can only work 20, 25 or 30 hours a week, either because they have other commitments that prevent them working more hours, or because the only employment available in their area is shift work or part-time employment. There is not much the tax or benefit system can equitably do to remedy this but the government has a duty to create the economic conditions across the nation whereby there is a range of employment types to suit the skills and availability of the local population. This will not be easy in rural areas or where a major traditional industry has declined or disappeared. Where I live in Norfolk there is virtually no full time work available for young people or women of any age without a degree or professional qualification. The consequence is that a large number of people will never be able get a full ‘living wage’ even if they are on a relatively high hourly rate.