Benefit cuts timetable

Mersey_2

HM Treasury calculations are online via the BBC live Budget blog.


There's some detail:


Backdating of claims is to be limited to 4 weeks.


JCP support (presume this is the discretionary fund but doesn't say) is to be cut by £100m pa.

henlans

Mersey wrote: »

HM Treasury calculations are online via the BBC live Budget blog.


There's some detail:


Backdating of claims is to be limited to 4 weeks.


JCP support (presume this is the discretionary fund but doesn't say) is to be cut by £100m pa.

I remember in 2003 when I moved from out of the UK to the UK I didn't claim tax credits for 11 months and they were nice and backdated the lot. that wont happen with a tory gov.

Icequeen99

Stella_Artois wrote: »

Thanks very much for the explanation

No - it isn't £1 for a £1. You used to lose 41p of tax credits for every £1 your income was above £6420 (assuming wtc and ctc claim or wtc only). Now you will lose 48p for every £1 above a threshold of £3850.

IQ

Miroslav

bloolagoon wrote: »

The disability premiums still apply so not too much reduction - at least what I've read. You will lose the 41% after your premium due to disability

henlans wrote: »

http://www.telegraph.co.uk/finance/personalfinance/how-budget-affect-me/11721785/Budget-2015-what-to-expect-for-income-tax-and-the-personal-allowance.html


You will be -£2056.20 worse off

devon_guy wrote: »

The easiest way to work out your new tax credit entitlement is as follows...

Your earnings - £3,850 X 41% (tax credit withdrawal rate).

That figure you then deduct from the maximum tax credits you are entitled to gives you the amount you will receive.

So assume I am a single person with a disability working 21hrs a week earning 8,500 per year. The maximum WTC I can receive is 1,940 (basic element)+2,935 (disability element)=4,875
Using the current threshold of 6,420 I would be entitled as follows..

8,500-6420=2080
2,080*41%=832
4,875-832=4043 Which would be my current tax credit award.

Under the new regs I would be entitled to the following...
8,500-3,850(new threshold)=4,650
4650*41%=1860
4,875-1860=3015

Therefore come the new threshold, I would be over £1,000 a year worse off than this year. A lot to lose!

Thanks folks.

Miroslav

Mersey wrote: »

Treasury Minister David Gauke MP said no current claimants will be affected. It's for new claimants from 2017. Although I think he was just referring to the 2 child limit.


But the detail of all Budgets tends to take a few days to all come out.

Yes, I think that's just for the two child limit.

Tax Credit reductions come down from April 2016.

Minimum wage pay rise, but 48% of that (and more) taken away.

Icequeen99

Miroslav wrote: »

Thanks folks.

Did you see the post above where someone pointed out the calculation was wrong - they will be worse off than stated because the new taper is 48% not 41%

IQ

Stella_Artois

Icequeen99 wrote: »

No - it isn't £1 for a £1. You used to lose 41p of tax credits for every £1 your income was above £6420 (assuming wtc and ctc claim or wtc only). Now you will lose 48p for every £1 above a threshold of £3850.

IQ

Thanks for the clarification. It seems to me his cuts are much deeper than originally feared. I seemed to remember forecasts of losing approximately £700 per child. In my case it is more

Miroslav

Icequeen99 wrote: »

Did you see the post above where someone pointed out the calculation was wrong - they will be worse off than stated because the new taper is 48% not 41%

IQ

Yes, I saw it afterwards. Thanks.

So i'm going to be worse off financially from April 2016 than when I was on benefits two years ago.

Working pays. Apparently. What a shame my body tells me otherwise and my bank balance will in 9 months.

zagfles

The changes to the tax credits threshold and taper rate are big cuts for those in work, someone on £10k would lose about £1484 and someone on £20k would lose about £2184.

Whereas those on IS/income based JSA would lose nothing from this measure. So much for a "budget for workers" - the low paid in work are going to lose far more than the unemployed.

bloolagoon

zagfles wrote: »

The changes to the tax credits threshold and taper rate are big cuts for those in work, someone on £10k would lose about £1484 and someone on £20k would lose about £2184.

Whereas those on IS/income based JSA would lose nothing from this measure. So much for a "budget for workers" - the low paid in work are going to lose far more than the unemployed.

Does that account for the Tax Threshold rise and the NMW rise?