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

bloolagoon

blondebubbles wrote: »

Why would they be joking? Losing £195 every 4 weeks would be difficult.

Well for one they overpay their mortgage by £500 a month which is now MF. I'm pretty sure they can manage

SkyeKnight

bloolagoon wrote: »

You are joking right about not managing?

They are losing £2.5k from a net income of around £25k - that's a big drop. I think the problem is not that they can't survive on £22.5k, but that it is such a dramatic change in income that is not being well publicised.

Us lot on here are lucky because we know and have 9 months to prepare (I have already cancelled all my charity direct debits, got rid of my mortgage overpayments and stopped my oldest child's swimming lessons). There are not many people who find it easy to handle such a large drop in income as people do tend to spend to their income - how are people going to cope who find out at the last minute?

I am just very thankful to all the people on here like Icequeen99 and blondebubbles who are making these changes better known.

bloolagoon

SkyeKnight wrote: »

They are losing £2.5k from a net income of around £25k - that's a big drop. I think the problem is not that they can't survive on £22.5k, but that it is such a dramatic change in income that is not being well publicised.

Us lot on here are lucky because we know and have 9 months to prepare (I have already cancelled all my charity direct debits, got rid of my mortgage overpayments and stopped my oldest child's swimming lessons). There are not many people who find it easy to handle such a large drop in income as people do tend to spend to their income - how are people going to cope who find out at the last minute?

I am just very thankful to all the people on here like Icequeen99 and blondebubbles who are making these changes better known.

I agree it should be better publicised so people have time to prepare and some will find it hard. But it's hard to sympathise with people who have multiple homes are mortgage free and very well off saying they don't know how they will manage.

evenasus

blondebubbles wrote: »

Not sure what MF stands for, sorry.

I know nothing about the persons situation. But I know personally if someone took £200 away from me every 4 weeks I'd find it difficult and my income is higher than theirs.

MF - Mortgage free.

I think these two posts by starM might help you understand bloolagoon's posts.

https://forums.moneysavingexpert.com/discussion/5231169

http://forums.moneysavingexpert.com/showpost.php?p=68831894&postcount=1

bloolagoon

blondebubbles wrote: »

Not sure what MF stands for, sorry.

I know nothing about the persons situation. But I know personally if someone took £200 away from me every 4 weeks I'd find it difficult and my income is higher than theirs.

I would still be able to pay the bills, have food in the house etc but would affect me in other ways like saving for a house deposit, paying for my wedding etc. So even though I could manage, it would be difficult because of things I have planned.

I felt the same when I had to go part time due to I'll health and lost child benefit. However, I never claimed I would not be able to cope/manage. The income drop for all will be felt but the true effects will depend on many things. Major ones being childcare, housing and lone parents/disabled who can't work further hours. Moaning you cant cope when you've been overpaying a mortgage by hundreds per month doesn't gain much sympathy when people who don't get TC can't even save for their deposits.

curty510

bloolagoon wrote: »

Moaning you cant cope when you've been overpaying a mortgage by hundreds per month doesn't gain much sympathy when people who don't get TC can't even save for their deposits.

Agreed, it does seem unfair when people work hard and have little left, while others use handouts to pay a mortgage off.....100% proof that change is needed

margaretk

Can I just point out that OAPs are taxed on State pension and Private Pension.

Former_MSE_Sam_M

Icequeen99 wrote: »

The CTC threshold will be £12125.

CTC threshold is calculated as a result of the WTC basic + WTC couple element x 100/48 + 3850.

IQ

Hi Icequeen 99

Thanks for raising this issue.

We have confirmed with The Treasury and updated our story to state that for those entitled to Child Tax Credit only, the maximum amount of income a household can earn to be eligible for the full amount of Child Tax Credit will fall from £16,105 to £12,125 from April 2016.

Thanks again

MSE Sam M

ffacoffipawb

Out of interest, for this tax year and next (post the cuts) what is the maximum income you can earn to get £1 p.a. in child tax credits for 1, 2 or 3 children (i.e. the maximum income to qualify for anything)?
It is something like £20k, £23k and £26k this year I think.
Thanks

SkyeKnight

ffacoffipawb wrote: »

Out of interest, for this tax year and next (post the cuts) what is the maximum income you can earn to get £1 p.a. in child tax credits for 1, 2 or 3 children (i.e. the maximum income to qualify for anything)?
It is something like £20k, £23k and £26k this year I think.
Thanks

This year it is around £26k, £32k and £38k (very approximately)
Next year it is around £21k, £26.5k and £32k

That's for a completely straight Child Tax Credits claim, no disabilities, no childcare costs.