Benefit cuts timetable

rogerblack

bloolagoon wrote: »

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

NMW rise may be a significant negative for the self-employed. If you're barely making NMW, then you need to grow your business by 7% or so a year in order to keep up, or face MIF issues on UC.

zagfles

bloolagoon wrote: »

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

No, they might have more of an impact longer term, but looking at the April 2016 changes, when the new taper rate and threshold come into effect, the rise in the personal allowance of £400 will only gain people £80, £160 for a couple.

The "living wage" premium on top of the NMW 70p will gain £1456 on a 40 hour week, but then after tax, NI and tax credits withdrawal it'll only be a gain of £291.

Rises in later years may start making up the difference, but initially it'll be a big hit for working people claiming tax credits now.

bloolagoon

zagfles wrote: »

No, they might have more of an impact longer term, but looking at the April 2016 changes, when the new taper rate and threshold come into effect, the rise in the personal allowance of £400 will only gain people £80, £160 for a couple.

The "living wage" premium on top of the NMW 70p will gain £1456 on a 40 hour week, but then after tax, NI and tax credits withdrawal it'll only be a gain of £291.

Rises in later years may start making up the difference, but initially it'll be a big hit for working people claiming tax credits now.

Surprised at that to be honest, I thought they'd hit the underemployed not the employed

andrewmp

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.

How are you working that out? This calculator suggests different figures?

http://www.theguardian.com/money/ng-interactive/2015/jul/08/budget-calculator-summer-2015-impact-household-finances

£1.5k down for a family earning £10k and £1k down for a family earning £20k

andrewmp

bloolagoon wrote: »

Surprised at that to be honest, I thought they'd hit the underemployed not the employed

They're all seemingly scared of the unemployed. They were protected fro the Child Tax Credit cuts.

wiltsguy_2

curty510 wrote: »

Mr and Mrs special brew have had to cancel Benidorm 2015 due to their handout reduction in the budget. Kylie, Tatum, Britney, Brandon, Whitney, Tyler, Candice and Paris are said to be gutted....

i know i shouldn't....but :rotfl:

Casual_Bystander

Can't seem to see this anywhere
Has there been any change to the earnings threshold of £16105 for CTC only?
Thanks
Cas

[Deleted User]

rogerblack wrote: »

Because those moving into low-paid work will also be paid HB at a similar rate.

LOL


I have never received HB whether in OR out of work in the Braintree District


I am not prepared nor in a position to pay a private landlord to write a letter simply so I can 'try to claim' as much as it angers me


The whole system stinks !!!

zagfles

andrewmp wrote: »

How are you working that out? This calculator suggests different figures?

http://www.theguardian.com/money/ng-interactive/2015/jul/08/budget-calculator-summer-2015-impact-household-finances

£1.5k down for a family earning £10k and £1k down for a family earning £20k

I think the calculator's wrong. I've had a play with it to try to understand what it's doing - it's assuming that the "CTC only" threshold of £16105 will be unchanged, and will apply to those who work enough hours for WTC but whose earnings are too high for WTC. This has never been the case, and there's nothing in the budget to indicate this will change.

The "CTC only" threshold has only ever applied to those who don't work enough hours for WTC. There is nothing in the budget to indicate any change to the "CTC only" threshold, but it has always been set at the rate where the WTC basic and couple/lone parent elements taper to zero. This would be about £12120 next year.

If they were going to freeze the CTC only threshold, and let it apply to those who work enough hours for WTC, I'm sure they'd have mentioned it in the budget document as it makes a massive difference, a positive difference to claimants. There's no mention. So I can't believe the calculator is right.

zagfles

Casual_Bystander wrote: »

Can't seem to see this anywhere
Has there been any change to the earnings threshold of £16105 for CTC only?
Thanks
Cas

See my post above. According to Guardian calculator this is unchanged. But both IQ and I think this is wrong, and it'll be £12125.

See post #48 here https://forums.moneysavingexpert.com/discussion/5282993