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

themull1

tobysmummy wrote: »

We have had a letter through this morning telling us that our tax credits are dropping from £500 per month to ZERO!

Ours was based on earning a joint income of around £25,000 in 2009-2010 and having a toddler in full time childcare (£850 per month). (Hubby had been made redundant for some time during this tax year, so our earnings were lower) Last year, our earnings went up to around £43K as my husband was back in work after redundancy, yet we were still entitled to the £500, which I phoned and questioned but were assured we were entitled to.

I had no notification that this might happen, just a letter saying "we're not paying you anymore!" Income-wise it might look as though we earn a decent wage, which is true, but couple this with what we have to pay out each month in childcare, mortgage, bills, petrol, food etc, we are actually left with very little money to "play" with, and are not in a position to save for the future which really upsets me. Earning what we do, and working as hard as we work, we should be able to afford to go on a nice holiday this year, or treat ourselves to some luxuries, but we simply can't - our tax credits are needed to afford a decent quality of life - now we will be on the breadline because of our drop in income and increase in everything else. I'm struggling to understand how the average working family are allowed to be the hardest hit in the midst of these cuts and overhauls buy the coalition.

Sorry for the rant, and sorry I can't offer any help or answers to the OP, just wanted to say that I can identify with your situation and all we're doing is taking a long look at where we can cut back to try and manage, and hold out until school starts in september and childcare fee's stop.

Good luck to us all!

The tax credits went from £50000 limit, to £40000 limit on earnings, thats why you get nothing this year.

MissMoneypenny

dktreesea wrote: »

Fair enough, but put it this way, McDonalds and other minimum wage places like it are full of well educated young people who can't get jobs in the fields they are qualified for. Having an education guarantees nothing. Certainly not a decent income.

There are a lot of useless degrees and some not so good universities. Many students' go to university without bothering to find out what employers want.

bestpud

Shelldean wrote: »

working families CAN and DO receive free school dinners!!! We do!! Depends on the make up of the family and the wage earnt..
ANd yes some people who were on TC were entitled to the free laptop when the scheme was first run.

Not those on working tax credits, such the family we are talking about. You have to be on child tax credits alone and working less than around £16k. That doesn't apply to very many families and certainly not the one being referred to.

It is different in Scotland, as I stated in my original reply to melly, but even then it is only people earning under a certain amount. This family earn £18k and I believe the cut off is £16k (not that it's relevent as I don't think they are in Scotland.

People on working tax credits were not entitled under the nationwide scheme but they may have been if in the pilot area a few years earlier - I can't remember the ins and outs of it now.

As it happens, the laptop in question was bought with an OU grant, that won't have covered the full cost.

anguk

teabag29 wrote: »

I agree with alot of posts about too much tax credits and benefits being paid out etc but what do you think the solution is? Like people have said previously I think it would be harsh to end the welfare state all together and there would most probablly be a huge rise in crime if that were to happen.

There's no need to end the welfare state, in fact one good thing about this country is the fact we have a welfare state to help those that need it. But cuts do have to be made and benefits/tax credits should be there to help people to live not to pay for a more luxurious lifestyle.

We all knew there was going to be cuts to CTC, we were told last year, yet some people still seem to be surprised when they've received a letter saying they're getting less this year? The cuts are going to continue, we have to get used to that and cut our cloth accordingly not moan because we can't have nice holidays etc.

MissMoneypenny

bestpud wrote: »

As it happens, the laptop in question was bought with an OU grant, that won't have covered the full cost.

As it is too hot to go outside, I looked that up.

If eligible, you'll receive a grant of £135 which you should combine with your statutory Course Grant of up to £265 to spend on a new PC/laptop package.
http://www3.open.ac.uk/contact/faq.aspx?t=S&cat=1-2IH24G

You can build a fairly good desktop for about £300. That still leaves £100 from the course grant.

A lot/most of the course books come free with the courses. Plus I notice you can ask the OU for discretionary funding for travel to tutorials although the tutorials aren't compulsory for a lot of the courses.

MissMoneypenny

skcollobcat10 wrote: »

That was another ridiculous idea from this government what was ever stopping them going to a library? Free computers indeed, if they were on JSA, they should have got off the a**es and got a job to pay for one.

I don't think they checked to see that these free computers were going to homes where there didn't have a computer either!

Shelldean

MissMoneypenny wrote: »

I don't think they checked to see that these free computers were going to homes where there didn't have a computer either!

I can confirm they didn't do any checks like that. One family I know already had a pc and 2 laptops. But applied for and got another one so the mum and daughter didn't have to let the son use their laptops. ( he was for ever clicking on viruses)

bestpud

MissMoneypenny wrote: »

As it is too hot to go outside, I looked that up.

If eligible, you'll receive a grant of £135 which you should combine with your statutory Course Grant of up to £265 to spend on a new PC/laptop package.
http://www3.open.ac.uk/contact/faq.aspx?t=S&cat=1-2IH24G

You can build a fairly good desktop for about £300. That still leaves £100 from the course grant.

A lot/most of the course books come free with the courses. Plus I notice you can ask the OU for discretionary funding for travel to tutorials although the tutorials aren't compulsory for a lot of the courses.

Yes the course grant can be added to the computer grant.

You are correct that course materials aren't supplied, but any text books have to be sourced from the nearest academic library and it is far more difficult to access help with travel costs - that is means tested and a limited pot of money.

Also, many students need to sort childcare, or time off work, in order to travel to exam centres.

Tutorials arent compulsory but they are definitely recommended and people seem to find them worth the effort.

It's not to be sneezed at but neither is it a windfall. . Most manage because they carry on working and don't need the grant to live on.

Of course, once the computer is bought, the £265 in subsequent years is more than enough to cover any study costs for most people.

pensionworrier

blades_man wrote: »

I earn £40000 per year and we have had only £41 per month child tax credit for years (which has now stopped)!

This forum has made me realise that there are some big earners out there (£30000+) who are still receiving large child tax credits! It makes me want to pack up work and claim every benefit I can!

I do not understand why some apparently high earners -in terms of tax credits (I always thought high earners were those with individual incomes over £30k and not those with joint incomes of equilvalent amount!) are still receiving tc when I am not. Other posts have stated that those families over £42k will still get some tc - my letter received yesterday did not say I was entitled to anything. I thought at least I would get a small amount towards childcare cost but nothing! If it is available and I am entitled I will go for it as I have worked non-stop since I was 16 and all the way through uni paying my taxes and don't think my family should miss out because I chose to aim higher in terms of my career (which by the way is still paid lower than national average for a graduate which is way below the London average) - however since I am lucky to still have a job whilst those around me lose theirs I will collect what I can.

neil277

blades_man wrote: »

Your "rant" is uncalled for and has probably already offended several forum members.

The fact is; if your earnings went up to £43000 a year there is no way you should be getting £500 per month tax credit!!! You are almost saying that you should be given the £500 child tax credit to fund your lifestyle choice!

I earn £40000 per year and we have had only £41 per month child tax credit for years (which has now stopped)!

This forum has made me realise that there are some big earners out there (£30000+) who are still receiving large child tax credits! It makes me want to pack up work and claim every benefit I can!

How did people use to cope years ago without credit cards and tax credits, the benefits today have spoiled people