Date published: 29th January 2016

Annual tax summary is an attempt to divide the population into ‘us’ who pay taxes and ‘them’ who do not.

George Osborne, Chancellor of the Exchequer, is sending millions of households an ‘annual tax summary’ to explain how your taxes are being spent by the Treasury. These statements imply that a quarter of all taxes are spent on welfare. This is a hugely misleading account of the budget and is an attempt to divide the population into ‘us’ who pay taxes and ‘them’ who do not.

In fact, this recent article in the Guardian explains that for every £12.50 spent on the Welfare Budget only £1 goes on benefits or tax credits for non-pensioners who are out of work, and, Jobseeker’s Allowance and Housing Benefit for people who are unemployed (as opposed to sick and disabled or lone parents) only account for 20p out of that £1. Therefore, the unemployed only account for 1.6% of the welfare bill but the government has dropped plans to provide a breakdown of the welfare budget which would explain this.

In providing this distorted ‘annual tax summary’ the Chancellor will continue to mis-represent ‘them’ who rely on benefits (even if only for a short time) and will introduce further austerity cuts and welfare reform policies to save ‘us’.

These changes will inevitably mean some people will find it harder to access the welfare system or face being sanctioned by the Jobcentre Plus and have their benefits reduced or suspended. This will cause significant financial hardship and people will struggle to pay their rent or mortgage costs.

Fortunately, decisions made by the Jobcentre Plus are open to be challenged if you are unhappy with the determination of your case. You can apply for a mandatory reconsideration, and if you are still unhappy with the outcome, appeal to an independent tribunal.

Broudie Jackson Canter have experienced advisers who can guide you through the minefield of claiming benefits and to ensure that you receive all the assistance you are entitled to. We can advise you on how to challenge the decisions made by the Jobcentre Plus and provide representation if you have an appeal hearing. Broudie Jackson Canter can also advise you how to appeal to the Upper Tribunal if you are unsuccessful at the first appeal.

Please call a member of our dedicated Community Care team on 0151 227 1429 or email us at enquiry@broudiejacksoncanter.co.uk