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

missbiggles1

beecher2 wrote: »

Would a single person doing the same job earn any benefits through tax credits, or would he/she really be taking home less than half the pay?

A single childless person earning £15K would just get their salary, nothing else.

bloolagoon

missbiggles1 wrote: »

You're not allowing for the fact that your benefits are paid net rather than gross. Therefore the £15,000 + you receive in benefits (you forgot the £60 pw CB) is equivalent to around £22,000 giving you an income of around £37,000 gross.

It's far higher than that. It's distorted by the free car and petrol. If you simply look at the £1500 then using £1 CT and £20 PW HB they get (obviously this is usually a LOT higher but I'm taking that figure which gives a LHA of around £115 a week for a 3 bed.

On a £15000 salary with 4 children people get £400 a week in benefits. £92.12 WTC. £224.52 CTC. £20 HB £61.80 CB plus £1 CTB.

£400 is £20,800 per year add take home from a £15k job is £13,287. So take home income of £34k. You need to earn £46,000 PA to take home that net.

Obviously as I said for many that figure is a lot larger but the low housing costs £115 keep it low.

missbiggles1

bloolagoon wrote: »

It's far higher than that. It's distorted by the free car and petrol. If you simply look at the £1500 then using £1 CT and £20 PW HB they get (obviously this is usually a LOT higher but I'm taking that figure which gives a LHA of around £115 a week for a 3 bed.

On a £15000 salary with 4 children people get £400 a week in benefits. £92.12 WTC. £224.52 CTC. £20 HB £61.80 CB plus £1 CTB.

£400 is £20,800 per year add take home from a £15k job is £13,287. So take home income of £34k. You need to earn £46,000 PA to take home that net.

Obviously as I said for many that figure is a lot larger but the low housing costs £115 keep it low.

I thought it was more complicated but took the easy way.:o

bloolagoon

missbiggles1 wrote: »

I thought it was more complicated but took the easy way.:o

I just get so angry at those who scream - "tax those that earn £40k they are the ones that should suffer" when their true salary is higher.

beecher2

bloolagoon wrote: »

I just get so angry at those who scream - "tax those that earn £40k they are the ones that should suffer" when their true salary is higher.

It is all a bit soul destroying really. The level of entitlement is not good. These households must receive a huge shock when their children grow up and they have to live on their true income.

SkyeKnight

bloolagoon wrote: »

On a £15000 salary with 4 children people get £400 a week in benefits. £92.12 WTC. £224.52 CTC. £20 HB £61.80 CB plus £1 CTB.

I think the WTC is wrong - that is the full amount if you earn below the taper, isn't it? I make it £24 a week (probably what StixUK meant when he said "£24 for the year").

SkyeKnight

SkyeKnight wrote: »

I think the WTC is wrong - that is the full amount if you earn below the taper, isn't it? I make it £24 a week (probably what StixUK meant when he said "£24 for the year").

No, actually even that is too high because the taxable earnings are £17,500 due to the company car. So around £4 a week WTC.

SkyeKnight

StixUK wrote: »

For the avoidance of doubt.

I currently earn £15,000 and work full time. My wife is a stay at home parent. My tax code has been increased by the marriage allowance but then has decreased by 2500 because the company provides me a company car.

My WTC entitlement was £24 for the year and CTC was circa £11000. Council Tax Support is roughly £1 per week and housing benefit is roughly £20 per week.

Call it £28000 income in total including all benefits. I still have to pay all the necessary bills as obviously housing benefit doesn't include all of my rent.

Whatever you think, 28000/6 = £4666 Each to live on.

Make your own judgements. We will lose approx £75 per month as of April 2016, so we will receive roughly £27,100 or £4516 each.

If you wish to express it as a percentage we will receive just over 3% less income than we did last year.

Make your own judgement but that is the real situation whether or not you agree or disagree with it.

Someone on £17,500 salary is going to lose about £2k - I think that's more than you are estimating?

bloolagoon

:A

SkyeKnight wrote: »

I think the WTC is wrong - that is the full amount if you earn below the taper, isn't it? I make it £24 a week (probably what StixUK meant when he said "£24 for the year").

I used now figures this year and ignored the car allowance as the calculators don't do this. So basically because I'm not sure on car allowances I've left it out and calculated without this. Assuming that any benefit they get from the car is nulled out as I wouldn't know what car they drive, what fuel etc and therefore what a lease car would be in monetary terms. I've no idea on how company cars work as we get an allowance that is taxable income.

Perhaps simplistic but it's not really about StixUK personal circumstances it's about people screaming to tax salaries they deem high when in reality their own salary is often above or not dissimilar.

FBaby

bloolagoon wrote: »

I just get so angry at those who scream - "tax those that earn £40k they are the ones that should suffer" when their true salary is higher.

And that's the biggest insult to our society of all, that those enabling lower earners to enjoy a decent lifestyle end up with less than the recipients...and yet it is the recipient who are crying injustice.

You are right Stix, our society has really got it all wrong just the other way around.