Tax credits dropped from £500+ to £42 - help!

StormyWeather_2

To be eligible for school meals you need to get CTC but not WTC. So someone working but not entitled to WTC would be eligible so it would be someone working under 16 hours a week. I can't see many doing that, AFAIK you're allowed to earn £20 a week on IS/JSA after that they take of £1 per £1 you earn(or it used to be like).

I have in laws on tax credits and can make good comparisons because I know the full details rather than half stories. 4 kids like us, live in the same street as us, their money is topped up to within a couple of hundred quid of us despite me earning 10K more. In their house you have, 3 cars on the drive, they own their own home, a PS3 downstairs, a PS3 upstairs, a desktop computer downstairs plus a laptop (free of charge because they are impoverished) upstairs, a 52" plasma on the wall, a full Sky package, the best broadband, Iphones / Blackberrys each and 2 holidays a year. They aint even screwing the system.

So they've managed to do all that but their income is just a bit less than yours? Do think they could be more frugal in other areas so it allows them to get these luxuries? Maybe they're good at getting deals/bargains.

StormyWeather_2

bestpud wrote: »

I thought the change in the disregard has only just come into effect?

It's very clear what has happened:

The OP earnt less in the year 2009/10 so their award for 2010/11 was artificially high because the income disregard kicked in, despite their income rising considerably.

Now their award is based on their actual income and the drop in payments seems huge as it is the change in payments plus the loss of the artificially high award last year combined.

Oh I see, thanks for clarifying that. That makes sense.

bestpud

melly1980 wrote: »

You may be confusing me with someone else, by all means provide a quote and perhaps I can explain it.

Werent you the poster who was talking about all the tax free benefits that are added to a lower income, and one of those was free school meals? I replied to the post - I'm sure it was you but will check in a bit.

I am. The example that I use are family who's full details I know even to the point of seeing the award notice.

Then you will know they didn't get the laptop free as bring on WTC will have made them ineligible.

Its a fair point, there could be debt involved for some of it I will grant
you that.

Lending has gone through the roof so I tend to assume most families with that amount of expensive items, plus 2 holidays etc is not funding it entirely from their income. Unless they are members on here, or do lots of competitions...?

its a he by the way

Oops, sorry!

melly1980

StormyWeather wrote: »

So they've managed to do all that but their income is just a bit less than yours? .

I have those things. As I have said Its not about biterness or something having an item that I dont. I am a believer in the welfare system and the welfare system should not be used to provide people with luxury items. That holds true for 40K earners or 10K earners. The family in question could not afford these items without the welfare payments therefore welfare is paying for them.

StormyWeather wrote: »

Do think they could be more frugal in other areas so it allows them to get these luxuries? Maybe they're good at getting deals/bargains.

quite the opposite actually they are abysmal with money and will continue to be so until some is actually taken off them and they have to live within a means.

melly1980

bestpud wrote: »

Oops, sorry!

the laptop might have come via an education grant when studying with the OU ( i think) I could be wrong that it is via tax credits.

Miranda7

Hmmmn, I'm hoping that once I renew I'll get a weeny bit more - a third of my husband's earnings were tax exempt as night payments for staying in his lorry.

Thanks for the clarification - I know our salaries haven't gone up lots, and certainly not by £10,000 or more. So I'm feeling a bit more hopeful we may get a tad more once the renewal's in.

In the meantime, hopefully Egg and Lloyds will pay us back our PPI so I can afford to work!

bestpud

melly1980 wrote: »

Im not bitter or bamboozaled by material goods, I couldnt care less what someone else has Im only concerned with me. However as a supporter of the welfare state it irritates the **** out of me to see the system being used to provide more than what it is supposed to and then those same people take it as a right to have these things. Then the same people start to claim that those on higher earnings should forfeit the right to some of this money so that the lower earners can carry on riding the gravy train. That is quite literally what they are saying, "take money off the 40K earners because they dont need it, PS I still want my big telly, Sky and holidays though but you have to pay for it because Im only on 18 grand" Its as hard faced as can be TBH. Id propose a scaling back of it all, I am neither on the side of the 40K plus earners (because as you said it is equally ludicrous to fund their spending) or the lower earners. All of them should trim back.

But that said family shouldnt be in a position that they have to give up certain things that those lower down the payscale can have due to their subsidies.

As a family with a joint income of just over £20k and one dependent child, I can assure you we couldnt afford all that!

Our 19" CRT, years old TV is on the blink but it won't be going until it dies completely.

We have cut back in the same way most have.

FWIW, we pay full rent and council tax.

bestpud

melly1980 wrote: »

the laptop might have come via an education grant when studying with the OU ( i think) I could be wrong that it is via tax credits.

Ah, ok, the OU is pretty generous when it comes to stuff like that. You may well have qualified for one too.

ETA: the grant is actually less than the cost of a full sized laptop so it won't have been free. Theyd have topped it up to get a new full size one, as you are not allowed to buy second hand.

StormyWeather_2

melly1980 wrote: »

I have those things. As I have said Its not about biterness or something having an item that I dont. I am a believer in the welfare system and the welfare system should not be used to provide people with luxury items. That holds true for 40K earners or 10K earners. The family in question could not afford these items without the welfare payments therefore welfare is paying for them.

Ah ok, I see what you mean.

I won't start a discussion of who should get paid more for their job.:p

bestpud

Miranda7 wrote: »

Hmmmn, I'm hoping that once I renew I'll get a weeny bit more - a third of my husband's earnings were tax exempt as night payments for staying in his lorry.

Thanks for the clarification - I know our salaries haven't gone up lots, and certainly not by £10,000 or more. So I'm feeling a bit more hopeful we may get a tad more once the renewal's in.

In the meantime, hopefully Egg and Lloyds will pay us back our PPI so I can afford to work!

Are you saying your actual income for 2010/11 may be less than you predicted? So, when they have the actual figure, the award may increase but it will be based on your actual earnings last year?

I'm just checking you arent intending to estimate a lower income for this year? If you are then think carefully as you could receive an overpayment if you underestimate.