So these people who can't find enough hours to make to 24?

Spendless

What happens? I mean I get that they lose their working tax credit but what other implications are there? For example does it mean that they can then qualify for free school meals if their salary means they are under the amount to qualify? Does it work like someone who works under 16 hours when they are only allowed to keep so much of their wages and the rest comes off £1 for £1. Will it mean that those working under 24 hours would be better off and are able to go onto jobseekers instead? Are we about to see a heap of part-time jobs advertised that are under 24 hours per week as the post holder has left due to the changes.

(I'm aware that the 24 hours are between a couple with 1 working at least 16).

sarahg1969

Someone on here posted a few weeks ago that she was going to reduce her hours to 15, so that she could claim JSA instead.

I wonder how many people have been actively looking for full-time work ever since taking on 16-hour contracts? And how many have only just started now the panic has set in about tax credits?

allen35

Obviously it will depend on circumstances but with reduced income like Working tax credits for persons that rent and pay Council Tax, these benefits will increase due to lower income and probably mean they will receive maximum entitlement.

Unfortunately once again as so happens many times when MP's who have never experienced living on benefits attempt to change the complicated rules they made originally has an adverse effect on people living in poverty.

There will be an outcry from April onwards when people suddenly realise what it means to them.

Also the new rules with contribution based ESA claimants in the working related activity group losing their entitlement when means tested is applied.

Gonna be a nightmare me thinks!!!!!!

BigAunty

Out of the 212,000 current claims for WTC by households with couples who only work 2 days a week between them instead of the potential 10 days a week, who cannot make it up to 3 days a week, they should be able to claim free school dinners as these generally aren't available to WTC claimants.

Also, as council tax discount and housing benefit is based in income, it's possible these might be adjusted upwards. I don't know how they stand for any increases in child tax credits.

kez917

If the tax credits go down then the housing benefits cost to the governement will go up, surely? So are they not just reducing money they pay out in central government and putting it in the hands of the LA to pay higher amounts of HB and CTB?

Dunroamin

kez917 wrote: »

If the tax credits go down then the housing benefits cost to the governement will go up, surely? So are they not just reducing money they pay out in central government and putting it in the hands of the LA to pay higher amounts of HB and CTB?

Not everyone who claims WTC also claims LHA/HB/CTB.

kez917

I understand that, but those who don't do a combined number of 24 hours a week probably do, don't they? And if they did not before, surely they will do after this?

Spendless

Dunroamin wrote: »

Not everyone who claims WTC also claims LHA/HB/CTB.

Well not currently cos they have WTC and may not qualify but when they don't? I can see they may not have housing benefit as they may have a mortgaged house but council tax benefit. In fact thinking about if if a couple with a mortgaged house lose their WTC is there financial assistance for this or not? I know there is help for interest paid after so many weeks if you are on job seekers as years ago I claimed it myself.

I am really surprised that there is so many people with just part-time jobs. I would dearly love one myself- I lost mine at NY when my employer lost their contract. Not cos I am trying to maximise tax credits we don't qualify for them, but because I have not completely independant kids, a husband who works long erratic hours, and parents/in-laws and grandmothers all with health/mobility problems I help out with. I can't find anything part-time that fits in with hours that childcare is available for.

Dunroamin

kez917 wrote: »

I understand that, but those who don't do a combined number of 24 hours a week probably do, don't they? And if they did not before, surely they will do after this?

I was thinking about all those who own their own homes (with or without a mortgage) or who live with family.

Soapn

I think that eliginibility for Working Tax Credit should have been set at 24 hours from the get go.

BigAunty

Spendless wrote: »

...

I am really surprised that there is so many people with just part-time jobs. ..

Yes, 212,000 households with probably around 400,000 to 500,000 children where there is one of the adults working on a half time basis and the other one not working at all....

I saw a table published on the guardian which basically said for those under a certain household salary, it is essentially a waste of time taking on any extra work whatsoever. Not only is there the double-whammy of tax to pay with the withdrawal of benefit, there are also lifestyle issues (time with children, not having to spend effort in a monotonous job) and expense issues (childcare, cost of travel to work).

So a household with 1 adult in part time employment may enjoy an income or standard of living equivalent to two adults in full time employment - work doesn't actually pay because of the cushion of tax credits, housing benefit, council tax discount, etc.