According to www.entitledto.co.uk a couple with 2 kids would be entitled to £27,800/year inc housing, child benefit, etc. This equates to a pre-tax salary of £34k, or the equivalent of 1.5x minimum wage jobs (one person working full-time, one part time). It's not luxury, but it's not chicken-feed either.No one is. Universal Credit is currently £400.14 per month, if you are single and over the age of 25. You are expected to spend 35 hours per week looking for work at this rate, equating to roughly £2.60 per hour... Well under the national minimum wage of £12.21 per hour.
As for increasing the tax take, 40% of everything you earn over £50k is high enough. At £60k your child benefit gets eroded, and at £100k you personal tax allowance. Anyone at the dizzying heights of £125k (not exceptional in London) has already paid £47k tax/NI. How much more would you want to take???
