housing benefit ?

real1314

There are points in the benefit system, where if someone does 3 extra hours work, at say £6.66 a hour, they lose that extra £20 as follows:-

20% Tax, 10% NI (roughly)

Leaves £14

Tax Credits take 55% of that off any Tax Credit award, That's £7.70 off the tax Credit, leaving £6.30 net increase.

HB will then look at the overall increase in income across Wages and tax Credits, i.e £6.30 and will take 65% of that off the HB award (£4.10 off) and 20% off the Council tax award (£1.26 off).

So, taking the £4.10 and £1.26 off the overall increase of £6.30, what's left is:-


£0.94

For 3 hours extra work.

Of course if the OP could lift themsleves above the CTB threshold, they'd be looking at £2.20 extra for 3 hours;

Above the HB threshold and it'd be the full £6.30 for 3 hours.

Unless someone can lift themselves out of the benefit trap (leading to a finacial improvement), or their work would potentially lead to better work / wages (leading to future potential improvement), the system does not otherwise give them any worthwhile reward for extra work.

People who do not see this are blind to the reality that some people have to live with.

flashnazia

real1314 wrote: »

There are points in the benefit system, where if someone does 3 extra hours work, at say £6.66 a hour, they lose that extra £20 as follows:-

20% Tax, 10% NI (roughly)

Leaves £14

Tax Credits take 55% of that off any Tax Credit award, That's £7.70 off the tax Credit, leaving £6.30 net increase.

HB will then look at the overall increase in income across Wages and tax Credits, i.e £6.30 and will take 65% of that off the HB award (£4.10 off) and 20% off the Council tax award (£1.26 off).

So, taking the £4.10 and £1.26 off the overall increase of £6.30, what's left is:-


£0.94

For 3 hours extra work.

Of course if the OP could lift themsleves above the CTB threshold, they'd be looking at £2.20 extra for 3 hours;

Above the HB threshold and it'd be the full £6.30 for 3 hours.

Unless someone can lift themselves out of the benefit trap (leading to a finacial improvement), or their work would potentially lead to better work / wages (leading to future potential improvement), the system does not otherwise give them any worthwhile reward for extra work.

People who do not see this are blind to the reality that some people have to live with.

Valid points there but in this situation there could still be some tax-free allowance left. I'm assuming OP is on NMW and works 16 hours = £92.80 per week gross. She can earn up to £124.50 a week tax free. Therefore can do an extra another 5 hours free of tax (but NI threshold is £110 though). Only reduction will be 39p of every pound she earns over tax credit threshold (and some NI for money over £110 - 11% of it).

(I'm not a benefits expert so I could be wrong - I only know this because I looked it up for ppl I know.)

Duncombe

Then the answer is to work more than 3, or 5, hours a week! Sheesh, its not rocket science!

fluffymovie

Sounds to me as though they are taking the highest non dependant deduction for your 19 year old. If you let them know what her income is, they will amend the deduction.

If you check your letters, it would say if this was a non dep deduction issue

Vader123

Duncombe wrote: »

Ok, if we ignore the obvious problems with this....

You will soon loose all benefits associated with your oldest daughter, and your other daughter is 14 - not long until you loose those too, particularly if she decides to finish education at the earliest opportunity.

There are lots and lots of benefits to working FT, mostly the huge increase in wage. Benefits are not designed to be a lifestyle choice as you appear to have made them.

When you no longer have any dependents, you will loose CTC and CB and your WTC unless you up your hours to 30 per week. You will also see a reduction in your HB and CTB as you will only be seen as 'needing' to support yourself. You won't be able to claim JSA as you have a job so by upping your hours now, you're planning for the future.

In addition, the benefit system is changing and you might find your tax credits / other benefits reduce sooner rather than later.

Thats just the financial aspect. As DMG says, would it not give you a sense of pride and/or self respect to be less reliant on state benefits? You'd also be teaching your daughters a valuable lesson about supporting themselves...

This is the best piece of advice I have read on MSE for a long while!

Vader

andyandflo

real1314 wrote: »

There are points in the benefit system, where if someone does 3 extra hours work, at say £6.66 a hour, they lose that extra £20 as follows:-

20% Tax, 10% NI (roughly)

Leaves £14

Tax Credits take 55% of that off any Tax Credit award, That's £7.70 off the tax Credit, leaving £6.30 net increase.

HB will then look at the overall increase in income across Wages and tax Credits, i.e £6.30 and will take 65% of that off the HB award (£4.10 off) and 20% off the Council tax award (£1.26 off).

So, taking the £4.10 and £1.26 off the overall increase of £6.30, what's left is:-


£0.94

For 3 hours extra work.

Of course if the OP could lift themsleves above the CTB threshold, they'd be looking at £2.20 extra for 3 hours;

Above the HB threshold and it'd be the full £6.30 for 3 hours.

Unless someone can lift themselves out of the benefit trap (leading to a finacial improvement), or their work would potentially lead to better work / wages (leading to future potential improvement), the system does not otherwise give them any worthwhile reward for extra work.

People who do not see this are blind to the reality that some people have to live with.

I have been banging on about this before and guess what - I got slated!!!

When you can see a damn sight more in your pocket for working extra hours then things will not change.

And as for this gobbledook about trying to make people feel guilty that they are getting their benefit money out of the taxes of working people is just no fair and right. If benefits are there, and they are entitled to them - they should not be crticised for claiming them. They are entitled and have rights just the same as any one else.

Feeling better - being self sufficient - doing the best for the country - what a load of old cobblers!!

What is important to the ordinary claimant is that they want to see some real difference being made in being able to keep a lot more of their wages before they start losing their benefits.
Like I said before, there is no way I would do any more hours for a few quid more than what I am getting in total benefits + what I earn now!!
Neither will 1,000's of others!!

And don't give me that old rubbish about losing benefits next month, of course things will change, the claimants will have to adapt to them - and work round the system - whatever happens.

dmg24

andyandflo wrote: »

I have been banging on about this before and guess what - I got slated!!!

When you can see a damn sight more in your pocket for working extra hours then things will not change.

And as for this gobbledook about trying to make people feel guilty that they are getting their benefit money out of the taxes of working people is just no fair and right. If benefits are there, and they are entitled to them - they should not be crticised for claiming them. They are entitled and have rights just the same as any one else.

Feeling better - being self sufficient - doing the best for the country - what a load of old cobblers!!

What is important to the ordinary claimant is that they want to see some real difference being made in being able to keep a lot more of their wages before they start losing their benefits.
Like I said before, there is no way I would do any more hours for a few quid more than what I am getting in total benefits + what I earn now!!
Neither will 1,000's of others!!

And don't give me that old rubbish about losing benefits next month, of course things will change, the claimants will have to adapt to them - and work round the system - whatever happens.

You've not suggested that she claims ESA - are you feeling ok? :rotfl:

Lip_Stick

The people moaning on this thread about the OP not working a full time job, I bet, are the same people that moan about parents not knowing what their children are up to all the time. If the OP's child did something silly, they'd soon be on her back for not supervising her child properly.

It also makes me laugh how SAHMs somehow think they are above single parents. Wouldn't surprise me if a few of those were dishing out the nasty comments.

tcr_3

dmg24 wrote: »

You've not suggested that she claims ESA - are you feeling ok? :rotfl:

Poor Flo. She must have the patience of a saint.

I'd have stuck his testicles through a mangle by now.

Oldernotwiser

tcr wrote: »

I'd have stuck his testicles through a mangle by now.

I bet you could claim ESA for that!;)