Confused about 2012 tax credits

Charityworker

I know it's a long way off but I like to be prepared.

I want to find out how the changes to tax credits in 2012 will affect me. I work 16 hours a week for £6.08 per hour as an administrator for a charity. My husband is currently working but is being made redundant next week. He's applied for lots of jobs but no luck as yet. I've got 2 daughters from a previous marriage who live with us aged 17 and 14. The 17 year old is on a full time college course and the 14 year old is still at school.

I know that we will lose working tax credits because we need to be working 24 hours a week between us. I can try asking my employer to put my hours up but it's a charity so they probably wont be able to do it.

So I need to know what will we get in April 2012 if circumstances stay the same?

I forgot to say ex husband pays me £6.80 a week in child maintenance (and no that isn't a typing error).

bestpud

It would be CTC and Child Benefit, but I believe they take WTC into account for Housing/Council Tax Benefit, so you'd probably receive more of those to counter balance the lack of WTC.

That's my understanding but I'm happy to be corrected!

Your school age dd would be entitled to free school meals if you earn less than £16k ish under current rules - not sure if thats changing?

Your other dd could apply for discretionary funding from college, but it will probably be allocated elsewhere by April.

Charityworker

Thanks for your reply.

I've read that the CTC is going up by £255 but it's unclear whether that is per year, per month or per week and is that per child or for the whole family?

We are in receipt of a bit of housing benefit.

We were told that we could not get free school dinners because neither of us is getting job seekers allowance.

My eldest daughter applied for a discretionary grant and was given half off her bus fayre. The college is 15 miles away and the bus fayre is £5.70 return each day. There are no other colleges in the area doing the course she wanted to do (animal care).

bestpud

Charityworker wrote: »

Thanks for your reply.

I've read that the CTC is going up by £255 but it's unclear whether that is per year, per month or per week and is that per child or for the whole family?

We are in receipt of a bit of housing benefit.

We were told that we could not get free school dinners because neither of us is getting job seekers allowance.

My eldest daughter applied for a discretionary grant and was given half off her bus fayre. The college is 15 miles away and the bus fayre is £5.70 return each day. There are no other colleges in the area doing the course she wanted to do (animal care).

It's £255 per year but I don't know if it's per claim or child.

Check the school dinner situation with your LEA. You won't be eligible while claiming WTC (except for a few areas) but you should be after April if your OH hasn't found work by then.

Likewise, you would get more help from the college from next year.

You only need another 8 hours between you though. Maybe one or both of you could get a little cleaning job for the time being. It will be easier for your OH to find another job if he stays in work - lengthy periods of unemployment don't look good.

zagfles

Charityworker wrote: »

Thanks for your reply.

I've read that the CTC is going up by £255 but it's unclear whether that is per year, per month or per week and is that per child or for the whole family?

We are in receipt of a bit of housing benefit.

We were told that we could not get free school dinners because neither of us is getting job seekers allowance.

My eldest daughter applied for a discretionary grant and was given half off her bus fayre. The college is 15 miles away and the bus fayre is £5.70 return each day. There are no other colleges in the area doing the course she wanted to do (animal care).

£255 is last year's CTC child element increase, this year's will probably be less, don't think the rates have been announced yet. It's per child per year.

You might get free school meals, it's not dependant on getting JSA, it's dependant on NOT getting WTC, which you won't be next year. Also there's an income limit of about £15-16k I think.

As above your HB will probably go up due to losing WTC.

Charityworker

Oh dear if it's only £255 a year that means I will have £4.90 per week added on to child tax credit. But I will lose about £74 a week in working tax credit. It's beginning to look like I will be better off giving up work and signing on.

Charityworker

In fact I've just done the calculations. Please correct me if I'm wrong:

2011 amounts
Wages - £97.28 per week
Working tax credit - £74.00
Child Tax credit - £108.00
Total - £279.28

Disregarded income - £268.00
Leaving - £11.28

65% towards rent - £7.33
20% towards council tax - £2.25.
Total net pay - £269.70


2012 amounts
Wages - £97.28 per week
Working tax credit - £0
Child Tax credit - £112.90
Total - £210.18

Total net pay - £210.18
= £59.52 per week worse off than in 2011.

full housing benefit and council tax benefit.

If I was signing on
Weekly JSA Couples amount - £105.95
Child Tax credit - £112.90
Total net pay - £218.85 per week.
£8.85 per week better off than if I worked.

Full housing benefit and council tax benefit.

Then they wonder why people are work shy. Before you all get on your high horses I won't be giving up work but I hardly think it's fair. I have been applying for 2nd jobs and so has my husband but even those are hard to get around here. I've even thought about selling something on ebay or opening a small business but it's knowing what to do it in.

zagfles

Charityworker wrote: »

Oh dear if it's only £255 a year that means I will have £4.90 per week added on to child tax credit. But I will lose about £74 a week in working tax credit. It's beginning to look like I will be better off giving up work and signing on.

Yes but your HB will increase a lot, and you'll likely get council tax benefit. You're unlikely to be better off on the dole.

zagfles

Charityworker wrote: »

In fact I've just done the calculations. Please correct me if I'm wrong:

2011 amounts
Wages - £97.28 per week
Working tax credit - £74.00
Child Tax credit - £108.00
Total - £279.28

Disregarded income - £268.00
Leaving - £11.28

65% towards rent - £7.33
20% towards council tax - £2.25.
Total net pay - £269.70


2012 amounts
Wages - £97.28 per week
Working tax credit - £0
Child Tax credit - £112.90
Total - £210.18

Total net pay - £210.18
= £59.52 per week worse off than in 2011.

full housing benefit and council tax benefit.

If I was signing on
Weekly JSA Couples amount - £105.95
Child Tax credit - £112.90
Total net pay - £218.85 per week.
£8.85 per week better off than if I worked.

Full housing benefit and council tax benefit.

Then they wonder why people are work shy. Before you all get on your high horses I won't be giving up work but I hardly think it's fair. I have been applying for 2nd jobs and so has my husband but even those are hard to get around here. I've even thought about selling something on ebay or opening a small business but it's knowing what to do it in.

Your partner can claim JSA, even after he's used up his 6 months contribution based JSA he should be able to claim income based JSA, as you're working under 24 hours.

http://www.turn2us.org.uk/information__resources/benefits/income-based_jsa.aspx

Charityworker

zagfles wrote: »

Yes but your HB will increase a lot, and you'll likely get council tax benefit. You're unlikely to be better off on the dole.

I don't think it will. We already get nearly full housing benefit due to me being on such a low income. They won't pay us more than they rent is.

Charityworker

zagfles wrote: »

Your partner can claim JSA, even after he's used up his 6 months contribution based JSA he should be able to claim income based JSA, as you're working under 24 hours.

Ok thanks. He won't be happy with that as he hates the stupid schemes they put you on. I'd rather it be me that signed on as I quite enjoy the stupid schemes. But so be it.