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Spending Review: benefits cut in welfare axe

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  • shell_542
    shell_542 Posts: 1,333 Forumite
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    Van1971 wrote: »
    Actually, she would have to declare it as child maintenance is considered as income, chances are she would not be entitled to IS if she stopped working.

    Maintenance is disregarded as income for benefits purposes now. It changed earlier this year.
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  • shell_542
    shell_542 Posts: 1,333 Forumite
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    fermi wrote: »
    Do you mean this bit?

    http://www.moneysavingexpert.com/news/utilities/2010/10/spending-review-benefits-cut-in-welfare-axe

    "Freezing the basic and 30-hour (for those who work over 30 hours) elements of tax credits for three years and from 2012 changing the working tax credit rules so couples with children must work 24 hours per week between them, with at least one working 16 hours."


    Now I'm a bit unsure ...

    From the BBC website : From next year, couples with children must work at least 24 hours a week between them in order to be eligible for working tax credit

    Also on the actual report published by the treasury, the changes to childcare will be from "April 2011" ... it then goes on the expain about the change to 24 hours. There's no mention of 2012. (Pg. 68, box 2.6 of the Spending Review)

    http://www.hm-treasury.gov.uk/spend_sr2010_easyread.htm
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  • fermi
    fermi Posts: 40,544 Forumite
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    edited 21 October 2010 at 12:13PM
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    shell_542 wrote: »
    Now I'm a bit unsure ...

    From the BBC website : From next year, couples with children must work at least 24 hours a week between them in order to be eligible for working tax credit

    Also on the actual report published by the treasury, the changes to childcare will be from "April 2011" ... it then goes on the expain about the change to 24 hours. There's no mention of 2012. (Pg. 68, box 2.6 of the Spending Review)

    Yes, but it doesn't say that the 24hrs will be brought in for 2011 either. Just that it should save £390 million a year by 2014-15

    The section that states 2011 only seems to apply to the reduction of the childcare element as far as I can see?

    Now, if you look at the projected savings on p12, table 3, you will see that the 24 hours limit makes no saving in the 2011-12 year. In other words, it is not being brought in till the 2012-13 year.

    cap_137001.png

    While comparably, the other WTC changes announced show a saving/cost in the 2011-12 column, since they will be coming into effect on that year.

    Or at least that is the way is seems to me?
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  • schrodie
    schrodie Posts: 8,410 Forumite
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    Apologies if this has been asked but what's to stop someone who has been thrown off Contribution Based ESA after the 12 months period then going onto CB JSA for the 6 months, then claiming again for CB ESA?

    Ta
  • shell_542
    shell_542 Posts: 1,333 Forumite
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    Hope so Fermi.
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  • TOBRUK
    TOBRUK Posts: 2,343 Forumite
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    schrodie wrote: »
    Apologies if this has been asked but what's to stop someone who has been thrown off Contribution Based ESA after the 12 months period then going onto CB JSA for the 6 months, then claiming again for CB ESA?

    Ta

    Osborne announced the plan to change the whole benefit system and have one universal benefit - my understanding is that all current benefits such as JSA, ESA/IB, IS etc will no longer exist. If this is what is going to happen it will not be possible to change from one to another as there will only be ONE benefit for all!

    All we can do at present is to speculate and as much as we will worry etc until the actual detail of changes are announced, and this won't happen any time soon because they haven't figured out themselves yet how it is going to work - we have to wait and see!

    We all want to know in advance what our situation will be when all this happens, it's only natural because we are scared, worried, etc about how it will affect us, but no one here can tell us - we will have to wait.
  • schrodie
    schrodie Posts: 8,410 Forumite
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    TOBRUK wrote: »
    Osborne announced the plan to change the whole benefit system and have one universal benefit - my understanding is that all current benefits such as JSA, ESA/IB, IS etc will no longer exist. If this is what is going to happen it will not be possible to change from one to another as there will only be ONE benefit for all!

    All we can do at present is to speculate and as much as we will worry etc until the actual detail of changes are announced, and this won't happen any time soon because they haven't figured out themselves yet how it is going to work - we have to wait and see!

    We all want to know in advance what our situation will be when all this happens, it's only natural because we are scared, worried, etc about how it will affect us, but no one here can tell us - we will have to wait.

    Thanks for your reply. I did note listening to Osborne yesterday that the Universal Benefit will be introduced much later than the introduction of the CB ESA time limit (in 2012/13) hence my wondering if after ones year on it plus the 6months on CB JSA you could return to CB ESA. However as you said the details are yet to be announced and all the details remain to be seen.
  • Firewallrob
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    ..........Going back to trying to provide answers, rather than listening to the usual Daily Mail "perma-outraged" readers lurking on forums - with the sole intent of venting their spleens :eek:.

    http://www.ion.icaew.com/TaxFaculty/20855

    It does indeed appear that the 24 hour element starts april 2012.

    Looks to provide other answers too I think.
  • NoNoDrama
    NoNoDrama Posts: 237 Forumite
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    So let me get this straight, ESA is the old incapacity benefit. So if you are ill you can claim it. However you will now only be entitled to 12 months of it regardless of whether you're still ill or not?? And then you are expected to go onto JSA? That's not just unfair it's outrageous. Say for example you have a broken back or severe mental illness you are expected to go onto JSA? :eek:
  • DX2
    DX2 Posts: 8,275 Forumite
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    NoNoDrama wrote: »
    That's not just unfair it's outrageous. Say for example you have a broken back or severe mental illness you are expected to go onto JSA? :eek:
    Who said that?
    *SIGH*
    :D
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