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

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  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    pd52 wrote: »
    I thought he meant it would go down to £628 a year?

    How is it worked out?

    Ah sorry, yes I may have misread. I thought he was saying they would reduce by £628 not to £628. Apologies to Zagfles - i misread his post.

    The change will be to your reduction due to income figure.

    Currently your income is £14500, you deduct the £6420 current threshold leaving £8080. That is tapered away at 41% which gives a reduction due to income of £3312 which is taken off your maximum tax credit amount.

    From April 16, your income is 14,500 but the threshold will only be £3850 leaving income of £10650. The taper has gone up to 48% which gives a reduction due to income of ££5112. Take that off your maximum credits gives you your entitlement. Your maximum credits will be slightly higher than this year so I make your entitlement about £693.

    IQ
  • [Deleted User]
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    curty510 wrote: »
    The government have gone too far this time. Expecting people to go out to work to support themselves and their kids!!!whatever next....

    please spare us the daily mail rubbish
  • zagfles
    zagfles Posts: 20,378 Forumite
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    pd52 wrote: »
    my award says:

    Basic: £1941
    30 hour element £803
    1 disability element £2938

    Total wtc £5683
    Reduction due to your income £3312
    Amount for the period £2370

    I just get standard pip care rate so I don't think I get the severe element ?

    I don't understand the new way and how it works :( is there a calculator anywhere?
    Reduction due to your income (highlighted above) will change.

    Now, they take 6420 off your income and multiply by 41%

    so 14500-6420 = 8080
    41% of 8080 = 3312

    In April 2016 they will only take 3850 off your income, and take 48% of the rest.

    14500-3850=10650
    48% of 10650 = 5112

    The award above looks like it's last year's not this, it's a bit higher this year and the disability element will go up a little next year, so you'd probably get around £630
  • [Deleted User]
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    curty510 wrote: »
    I feel sorry for the people that work for sky tv, special brew and cigarette companies. ....They will be worst hit

    hopefully you work for one of them?:D:j:T:rotfl:
  • chris2223333
    chris2223333 Posts: 27 Forumite
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    zagfles wrote: »
    Yes tax credits is income for HB so if tax credits decrease HB should increase. Not by the same amount obviously, HB will increase by 65% of the drop in tax credits.

    There are some bits in the budget about HB thresholds (applicable amounts) being reduced but it looks like they apply to the child cap and family element removal in 2017.

    Thanks for the reply. Yes I just hope this mechanism will help reduce some of the impact for some people.

    Yes it was the family premium used in the Housing Benefit calculation to determine income liability.
  • worried_jim
    worried_jim Posts: 11,631 Forumite
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    curty510 wrote: »
    The government have gone too far this time. Expecting people to go out to work to support themselves and their kids!!!whatever next....

    I know shocking! Next we will be expecting people to be able to afford children before they breed. What ever next? Social responsibility?
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
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    henlans wrote: »
    It looks like this..


    2 kids for the unemployed and massive hit to the working people.


    Massive hit on the low earners.. but we do have a £7.20 living wage that is rubbish.. it should have been £9 now. make these company's pay a proper wage, if you had this you would not need tax credits for working people.


    Personally, Ill take the 2k loss, but tax the OAP's too.. we are not all in this together.

    State Pension is taxable. Many pensioners pay tax throughout their lives.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • adamg
    adamg Posts: 485 Forumite
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    Great budget i'm 128 pound a year better off
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • clearingout
    clearingout Posts: 3,290 Forumite
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    Single, working full-time parent of 3...different calculators are giving me very different answers. Somewhere between £1.3k and £2.4k a year worse off.

    No commitment whatsoever by the Government to secure child maintenance from my ex. Not that I expected that to change, but it would have been good for it to have been nodded at, if nothing else.

    Can someone please confirm that I am reading it right re: 3 children... I will only be able to claim for 2 of them come 2017? If that's the case, it would seem the higher figure I quote above would be nearest the truth.

    Can feel a letter to my Tory MP coming on...!
  • brutamuk
    brutamuk Posts: 6 Forumite
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    The Income threshold that has been reduced is for Working Tax Credit is it not?

    £6420 - £3850

    If you only receive child tax credit and are in work the threshold currently is £16,010.

    This is my current situation-

    Income £12500
    Partners income £24000

    2 children, one of which receives higher rate DLA.
    Childcare costs of £95 per week.

    We're not entitled to any working tax credit.

    Child tax credit entitlement for this year is £6672 which obviously includes the extra disability elements.

    Surely the income threshold for someone in my situation doesn't fall from £16010 to £3850? If so, we will lose everything!
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