Tax credits may be cut under Tories - The Times

drc

http://www.timesonline.co.uk/tol/news/politics/article6812269.ece

Is this the harbinger of massive changes to the benefits system under whichever government wins the next election?

bendix

Let's hope so.

Harry_Powell

They should scrap the bloody things.

Heyman_2

Tax credits are a disaster, with people actually scared to claim them in case the government decides that they've paid out too much and come back wanting the money later on.

The problem is, I think the Tories will scrap them and put nothing in their place.

Whichever party is in power following the election, they are going to use the first year to do all of their cuts and then spend the next 3 years trying to win back public support prior to the next election.

Dave101t

i always thought oliver twist was the victim, but now i see how vital the workhouses could be for the unemployable...

purch

One of the guys who works for me, has £57 Income Tax deducted from his wages every week, and then HMRC credit £55 into his Bank account every week !!!

On the mind of a sheer genius could have thought up such a cunning scheme :eek:

StevieJ

Heyman wrote: »

Tax credits are a disaster, with people actually scared to claim them in case the government decides that they've paid out too much and come back wanting the money later on.

Behave

wageslave

Tax credits have benefited employers far more than they have employees.
It is no coincidence that employers like Tesco, Argos etc have the majority of their staff on 16 hour contracts, the lowest level the system starts to pay out to those with children.

PasturesNew

Yes, #8, employers have kept wages low and split up full-time jobs, then got in lots of part-timers who can claim WTC to top their wages up to what would have virtually been the full-time equivalent.

Nobody wins.

Lose 1 full-time job and one taxpayer.
Gain 3 part-time flexible jobs of 16 hours/week and pay out 3 lots of WTC and gain no income tax/NI.

Whoever thought that one up was a mathematical genius.

(Note: it's only 16 hours to get a payout if you have kids)

aah

Tax credits only exist because despite the minimum wage, people are not paid enough to live on.
Employers who pay poverty wages should be ashamed of themselves and not rely on the rest of us to make up their profits out of our taxes.

And no doubt these are the types who bleat about public sector wages and pensions...... yet they make their profits by underpaying their staff.

Never mind it sounds like the tories will be along to help them out, as ever

PasturesNew

aah wrote: »

Tax credits only exist because despite the minimum wage, people are not paid enough to live on.

While that is true, it's also true that WTC enables some people to get a top up after 16 hours' work. It's a method that has been twisted from it's original intention.

The original intent was: trying to find work, not earning as much as if you were on benefits, so a little top up. It turned into: do the minimum, top up makes it feel like full-time wages... so employers and employees who were able to take advantage all did so. But it wasn't supposed to work that way round... another c0ck up.