MSE News: Summer Budget 2015: Millions to face benefit cuts

Igotothefootofourstairs

Finish yourself off.... that's what they want you to do!

zagfles

blondebubbles wrote: »

The telegraph one works out exactly the same as my manual workings.

However it is only for straightforward cases so doesn't take into account disabilities or childcare.

Try it for a CTC only claim!

Try a single parent, 15 hours, 16,000 income.

Then just change hours to 16.

The results are non-sensical! They can't possibly both be right, whatever the truth of the CTC threshold.

zagfles

Blue22 wrote: »

I'm amazed nobody, not the press, the opposition leaders or even the IFS, have really picked up on the implications of lowering the income threshold and raising the withdrawal rate.

Yesterday's headlines just focused on working families losing a few hundred. Nobody seems to have highlighted that some families will be losing thousands including families with disabled children, that single non disabled people will no longer be eligible for tax credits and that many disabled workers will also be big losers.

I have to say Mr Osbourne delivered a very clever budget.

Particularly as all the calculators seem to be understating peoples' losses...

SkyeKnight

zagfles wrote: »

Try it for a CTC only claim!

Try a single parent, 15 hours, 16,000 income.

Then just change hours to 16.

The results are non-sensical! They can't possibly both be right, whatever the truth of the CTC threshold.

You can see why that result is occurring though - Mr Osbourne announced a change in the threshold for those claiming WTC. He didn't announce a new threshold is for those claiming CTC only so the Telegraph is having to currently assume it stays the same (but obviously this threshold is also going have to be lowered).

The calculator gives exactly the results as currently announced in the budget, but I'm sure the details will give a new CTC only threshold.

zagfles

SkyeKnight wrote: »

You can see why that result is occurring though - Mr Osbourne announced a change in the threshold for those claiming WTC. He didn't announce a new threshold is for those claiming CTC only so the Telegraph is having to currently assume it stays the same (but obviously this threshold is also going have to be lowered).

The calculator gives exactly the results as currently announced in the budget, but I'm sure the details will give a new CTC only threshold.

No, because although it's called the CTC only threshold, the legislation says that's the threshold to use for those entitled to both WTC & CTC, if higher than the point at which WTC would taper to zero (which, if it were to stay at 16105, it would be for anyone without childcare/disabilities).

So it must be wrong.

I see the LITRG are on the case:

http://www.litrg.org.uk/News/2015/150708_child_tax_credit_confusion

Lioness_Twinkletoes

Laurensalive wrote: »

VOTE IN THE EUROPE REFERENDUM AND KICK THE GOVERNMENT IN THE TEETH.
I WILL VOTE OUT.

I am really pleased that you have given deep and serious thought as to how to vote in the referendum. You demonstrate that you are a person that would vote for the right reasons, having done extensive research and having spoken to experts on both sides of the debate before carefully choosing the path you genuinely believe best meets the country's needs.

I'd hate to think that your vote would be entirely vengeful....Oh, wait.....

SkyeKnight

zagfles wrote: »

No, because although it's called the CTC only threshold, the legislation says that's the threshold to use for those entitled to both WTC & CTC, if higher than the point at which WTC would taper to zero (which, if it were to stay at 16105, it would be for anyone without childcare/disabilities).

So it must be wrong.

I see the LITRG are on the case:

http://www.litrg.org.uk/News/2015/150708_child_tax_credit_confusion

OK, fair enough. Though of course it works out the same if you use the WTC and taper it away to zero at £16,105 or use the CTC only threshold. The award notice gives the impression that it is done the first way as there is a section listing your WTC and then another place where they list the amount they are tapering off, with the end result of an award of £0 for WTC.

The Telegraph are obviously (wrongly) using the first method of calculation.

morbius50

Can someone answer the following question related to how many children can be claimed for.
If you are currently claiming ctc for 3 children, then will it be classed as a new claim if universal credit has not been rolled out yet, and your claim was through the ctc/wtc system. This would mean you lose credits for 1 child. Does anyone know when all areas will change to universal. thanks.

morbius50

But the small print also says it's for new claims.

sunshine1980

SkyeKnight wrote: »

OK, fair enough. Though of course it works out the same if you use the WTC and taper it away to zero at £16,105 or use the CTC only threshold. The award notice gives the impression that it is done the first way as there is a section listing your WTC and then another place where they list the amount they are tapering off, with the end result of an award of £0 for WTC.

The Telegraph are obviously (wrongly) using the first method of calculation.

Although I do not fully understand how CTC is worked out, if all the calculators are using the wrong amount to calculate CTC does anyone know how much more people are worse off if the CTC threshold is lowered also?


I have used the Telegraph calculator which says I will be £1515 worse off. I am assuming this is wrong because the CTC should be lowered from its current figure so will lose more from my tax credits award. I am a single parent and earn £10450. Does anyone know how much more might be knocked off my award?


If I have totally misunderstood please correct me!