confused by cap

eek1234

Hi everyone i know everyones pretty scared about these benefit caps and cuts, me included. I dont totally understand though and wondered if someone could explain so i can work out which level of poop im actually going to be in......ok so its rumoured tax credits will be capped at 20,000.....does this mean you will only receive tax credits if your family earnings are under 20000 OR does it mean your total benefits can only amount to that a year on top of earnings OR does it mean earnings and credits together can only amount to the annually.
Thanks so much in advance and sorry for sounding stupid.
xx

giddypenguin

Until anything is firmly announced on Wednesday, no one can tell you. The current cap means you cannot claim more than £500 a week (or less depending on your circumstances) More information here: https://www.gov.uk/benefit-cap

NYM

Currently, if someone is in receipt of WTC, they're not affected by the cap are they ?

HappyMJ

NYM wrote: »

Currently, if someone is in receipt of WTC, they're not affected by the cap are they ?

Correct cap does not apply to working families. There's no way the government would impose drastic benefit cuts on someone such as a qualified nurse with just 1 year of work experience but with 2 children whose partner stays at home to look after the children but as the nurse only has 1 year experience earns a relatively small amount. If they did that many would seriously consider moving out of London and out to the country...although that wouldn't necessarily be a bad thing for the family...but you'd lose all the essential workers in London.

bloolagoon

HappyMJ wrote: »

Correct cap does not apply to working families. There's no way the government would impose drastic benefit cuts on someone such as a qualified nurse with just 1 year of work experience but with 2 children whose partner stays at home to look after the children but as the nurse only has 1 year experience earns a relatively small amount. If they did that many would seriously consider moving out of London and out to the country...although that wouldn't necessarily be a bad thing for the family...but you'd lose all the essential workers in London.

I see no reason why not to apply the cap. Remember that is benefits. The situation above they would still get tax credits as they don't get £23k benefits. It would be wages plus benefits.

It would affect Avon workers who earn nothing though so a good move if they do it.

AG47

HappyMJ wrote: »

Correct cap does not apply to working families. There's no way the government would impose drastic benefit cuts on someone such as a qualified nurse with just 1 year of work experience but with 2 children whose partner stays at home to look after the children but as the nurse only has 1 year experience earns a relatively small amount. If they did that many would seriously consider moving out of London and out to the country...although that wouldn't necessarily be a bad thing for the family...but you'd lose all the essential workers in London.

This is exactly right, ALL low income families with a few kids in London would simply not be able to afford the high rents.