To: The Prime Minister and Government of the UK of GB and NI
Stop Disability Tax
APRIL 2018 SAW THE INTRODUCTION OF THE DISABILITY TAX FOR THOSE WHO OWNED THEIR OWN HOMES AND WHO ARE ON LOW INCOME BENEFITS.
We the undersigned require the government to introduce a fair system of housing payments for disabled people who own their own home, rather than the regressive and immortal DISABILITY TAX.
Why is this important?
APRIL 2018 SAW THE INTRODUCTION OF THE DISABILITY TAX FOR THOSE WHO OWNED THEIR OWN HOMES AND WHO ARE ON LOW INCOME BENEFITS. We require the government to reverse the immoral removal of the Mortgage Interest Relief Scheme (MIRS) for people with Disabilities, for whom the replacement has become a regressive tax (charging interest on interest) that could potentially lose them every penny that they have paid for their home. Further, institute a form of payments towards essential upkeep of owner occupied homes for those on low income benifits, providing parrity with private landlords of people in receipt of LAHA
This is especially important given successive governments encouragement of home ownership.
Changes in assistance with housing costs in 2018 have proportionatly adversly affected those with disabilities and thus immorally.
In the 2017 general election Theresa May's "Dementia Tax" was severely critised and ultimately dropped. This proposal would have seen much of the persons home value used for care but would have left a substantial sum for them to use or leave in a will.
Despite the public uproar at the Dementia Tax an effective wider affecting "Disability Tax" (which would have seen people who have become disabled and reliant on benefits, potentially loose every penny they have paid for their home as well as, possibly rightly, any increase in house value), has gone unchallenged and virtually unreported.
Up until 2018 the system by which some help was given to people on low incomes (e.g. Employment Support Allowance or its equivalent in Universal Credit) was by payments towards their mortgage interest payments, Mortgage Interest Relief Scheme (MIRS), this did not pay for all of their mortgage payments nor, as in the governments reasons for its removal, make any assistance with the actual cost of the property. It merely just gave some money towards the mortgage interest rate.
Unlike Local Area Housing Allowance (LAHA), which nominally pays the average cost of the full price of rent ( and thus the actual purchase price of a property, mortgage interest payments and upkeep of the property at a profit for somebody who isn't even living in the property, I.e. the landlord), MIRS was already a far cheaper scheme. As can already be seen that those in receipt of MIRS also received no help with most aspects of maintaining their home.
The government decided that MIRS needed replacing as erroneously they stated that the welfare system should not be seen as assisting somebody to pay for their home whilst quite willfully not only buying a landlords property and upkeep but also providing them with a profit.
In 2018 the new arrangements were introduced these provided a loan on some of the mortgage interest payments (a interest on interest loan scheme that would be considered unacceptable/imorral by the Financial Services Authority). These loans are to be repaid upon sale of the home or death. The only limit to the extent of the Loan repayable is the final sale price of the property. As such, the person could loose all the money they have paid into the property, a scheme worse than the proposed Dementia Tax but which has been allowed to be enacted.
Worse is the fact that those who are more likely to be on benefits long term, and thus most affected by this regressive Tax are those with severe disabilities or long term sicknesses (and their families, who often act as cheap carers). This new Disability Tax means that rather than getting help with housing costs, they face additional charges, the mortgage its interest, and then the interest on the interest-in the loan provided by the government.
As such under the new Disability Tax, not only does the disabled person probably loose every penny that they pay towards the purchase cost of their home, they effectively get no assistance in the long term with the cost of their home be that mortgage interest or upkeep, items that successive governments are happy to provide to landlords including effectively buying the property for them and providing a profit. Such a regressive and discriminatory reform of the benifits system in comparison to the treatment of those on LAHA and their landlords has to be seen as immoral and reprehensible.
If The Dementia Tax was wrong then this Disability Tax is totally Immoral.
How it will be delivered
Electronically or in person if there are a large number of signitures