Benefits compared to a payrise

seven-day-weekend

wannabehermit wrote: »

Why would you not want to better yourself? Give your children an example that working hard gets you somewhere rather than saying well it doesn't matter what I earn, the government will give us enough to live on.

We are currently in the position where DHs wages are an absolute pittance, we get a lot of benefit top ups, but you know what, it feels sh-it. I've just started a new job a couple of weeks ago and actually we're going to be worse off. We'll still be getting the benefits topping up our income, but hopefully we'll be in a position where maybe I'll get promotions and gradually we'll get to the point where we're earning enough to pay our own way.

I !!!!ing hate being on benefits (Child Benefit not included). It's not the way I was brought up and it's not the way I want my children to be brought up. Thank god that we do have the back up for people who fall on tough times but I don't want to be spending the rest of my life holding my hand out. ANy opportunity that we get to earn more will be taken with both hands and I don't understand why you wouldn't.

Sorry I'll get off my soapbox, I do know where you're coming from with regards to worrying about being better off, but why would you turn down an opportunity to (in the long term) be better off?

Great post, especially the underlined bit in the quote. It IS good that Benefits are there for people who have fallen on hard times. It is not so good when someone will refuse a promotion to better themselves, give a good example to their children and eventually be self-supporting, in order to continue to receive Benefits.

I would ALWAYS chose the self-sufficiency way, even if I was slightly worse off. Always.

distant_smile

Hi Smamfer. I have 2 children. I am not entitled to Working Tax credit.

For anyone who wants to answer my original question, I am trying to find out what decreases I would face. Firstly the promotion is not guaranteed but I would like to do the number-crunching. If I am to be worse off financially, I think I have a right to plan for it

seven-day-weekend

distant_smile wrote: »

Hi Smamfer. I have 2 children. I am not entitled to Working Tax credit.

For anyone who wants to answer my original question, I am trying to find out what decreases I would face. Firstly the promotion is not guaranteed but I would like to do the number-crunching. If I am to be worse off financially, I think I have a right to plan for it

Yes, agreed, of course you need to plan for it. I apologise if I was misunderstnding your intent. All I can suggest is the calculators that others have mentioned. Good luck.

distant_smile

I guess my earlier posts were a little conflicting. I would just rather know if I would loose housing benefit and child tax, just want to find out where I will stand

pelirocco

distant_smile wrote: »

I am more towards taking a promotion. And you are right, I never wanted to be on benefits, I had a disillusioned idea that it was !!!!!!!!!!s eho claimed. But being a parent I understand now that benefits are claimed by all sorts, it doesn't feel great to be on them. I can't even earn overtime as I am penalised by the benefit system and end up worse off. It's really sad to say.

It would be a good lesson to teach my children, bettering yourself is the way to go definately. I suppose what I am really trying to find out is just how much worse off I may be. At least Ithat way I can plan where to make cuts in my expenses

Plus you are in the fortunate position to have one of you staying at home to look after your children

drwho2011

distant_smile wrote: »

Hi Smamfer. I have 2 children. I am not entitled to Working Tax credit.

For anyone who wants to answer my original question, I am trying to find out what decreases I would face. Firstly the promotion is not guaranteed but I would like to do the number-crunching. If I am to be worse off financially, I think I have a right to plan for it

Makes life a lot easier to calculate.

Child Benefit = £93.80 every 4 weeks is actually £132.

Also means you have £6,760 per year total (inc Child Benefit)

CTC + CB on £25,000 should be roughly £116 per week if you have 2 children.

distant_smile

It doesnt seem that my benefit would reduce much? £116per week would equal £6032 which is only £700 less per year than at present. Does not seem a very big decrease, I would have thought I would loose more

drwho2011

distant_smile wrote: »

It doesnt seem that my benefit would reduce much? £116per week would equal £6032 which is only £700 less per year than at present. Does not seem a very big decrease, I would have thought I would loose more

It would probably decrease more from April 2013 because tax credits would be based on your income of the 2012-2013.

In your calculation CTC and CB were £85 per week which would be about right if your household income for 2011-2012 was £25,000.

My calculation was based on a 2011-2012 household income of £21,000 (your salary year to date + extra from the promotion till April), £83 in CTC + £33 CB = £116 per week

All I think you would lose is HB.

distant_smile

So stepping from £18,500 to £25,000 is an increase of £6,500.
My CTC and CB would be around £4,000 based on your calculation of £85 per week combined. Therefore the drop would be around £2,700?

I know it's rough but it will givce me a fair idea

drwho2011

distant_smile wrote: »

So stepping from £18,500 to £25,000 is an increase of £6,500.
My CTC and CB would be around £4,000 based on your calculation of £85 per week combined. Therefore the drop would be around £2,700?

I know it's rough but it will givce me a fair idea

Your calculation above (£85 a week)
£368 (increase in salary) - £225 (lost benefits) = +£143 per month

My calculation (£116 a week)
£368 (increase in salary) - £58 (lost benefits) = +£310 per month

So your better off regardless, unless your gross household income will be greater than £21,000 in 2011-2012 then my calculation is correct. If your gross household income for 2011-2012 is £25,000 then yours is correct.

So likely you will be per month £310+ in 2012-2013 and £143+ in 2013-2014.