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

neil277

Benefits is what has got this country into the state it is today, The benefit system was meant to help the man, woman or young back into work, It was a safety net, today it is a fishing net.

Thanks

Neil

StormyWeather_2

melly1980 wrote: »

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.

The free laptop scheme was for people on IS/JSA, or an income under £16,000.

So how would they get one if they're getting WTCs?

bestpud

melly1980 wrote: »

It is fundamentally wrong to make someone better off through benefits that people who are not entightled to them. It is batsh1t crazy but it happens.

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.

It seems that you dont want the excessive lifestyles of the 40K+ earners
to be subsidised by the tax system but are more than happy for the lower earners to get a leg up to the same level.

That is a better comparison than the one you were making earlier tbh.

The OP has one child so you should be comparing their income against a lower income family with one child. Tax credits are a lot different for one child than four, and things like HB will require a far lower income for a family with one child too.

But anyway, you are looking in on another family with bitterness. How about you look at it another way?

While you maintain a foothold in the job market and can alter your hours or job in years to come, they will struggle when the tax credits stop.

Don't be bamboozled by the material goods - think long term!

But overall, it is fundamentally wrong to boost an income of over £40k a year so the family can enjoy luxuries.

If you feel that strongly about it, you or the OP could stop working and receive more from tax credits. Somehow though, I think you know that would be a bad move, long term, so instead you want to keep all the benefits of working but have the tax payer keep your children.

Up until now, families have done just that, while looking down their noses at families on low incomes! It's all coming to light now, isn't it!

StormyWeather_2

Miranda, the threshold for change in earnings went from £25k to £10k, could that account for your drop?

bestpud

StormyWeather wrote: »

The free laptop scheme was for people on IS/JSA, or an income under £16,000.

So how would they get one if they're getting WTCs?

Melly has some grand ideas when it comes to the amount families receive.

Despite knowing the facts about a family near her, she was saying working families receive free school meals the other day.

Methinks she's not as wise to the situation as she thinks.

I blame all the wonderful cars and TVs etc she has her eye on, without any thought for how the family may be up to their eyeballs in debt!

Miranda7

I'm sorry - what threshold is that? I'm probably being thick! Do you mean for WFTC or income tax?

StormyWeather_2

Before if your change in income was less than £25k, it wasn't classed as an overpayment.

They've brought this down to £10k, so could you be entitled to more than £42, but are in effect paying back an overpayment for last year?

melly1980

bestpud wrote: »

That is a better comparison than the one you were making earlier tbh.

The OP has one child so you should be comparing their income against a lower income family with one child. Tax credits are a lot different for one child than four, and things like HB will require a far lower income for a family with one child too.

But anyway, you are looking in on another family with bitterness. How about you look at it another way?

While you maintain a foothold in the job market and can alter your hours or job in years to come, they will struggle when the tax credits stop.

Don't be bamboozled by the material goods - think long term!
!

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.

bestpud wrote: »

But overall, it is fundamentally wrong to boost an income of over £40k a year so the family can enjoy luxuries.

!

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.

melly1980

bestpud wrote: »

Melly has some grand ideas when it comes to the amount families receive.

Despite knowing the facts about a family near her, she was saying working families receive free school meals the other day.!

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

bestpud wrote: »

Methinks she's not as wise to the situation as she thinks..!

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

bestpud wrote: »

I blame all the wonderful cars and TVs etc she has her eye on, without any thought for how the family may be up to their eyeballs in debt!

#

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

its a he by the way

bestpud

StormyWeather wrote: »

Before if your change in income was less than £25k, it wasn't classed as an overpayment.

They've brought this down to £10k, so could you be entitled to more than £42, but are in effect paying back an overpayment for last year?

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.