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

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  • worried_jim
    worried_jim Posts: 11,631 Forumite
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    £128 a year better off. Thanks George!
  • zagfles
    zagfles Posts: 20,374 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...!
    No it only applies to new children born after April 2017, or new claims after then, so you'll still get paid for 3 as long as your award doesn't stop for more than 6 months.
  • zagfles
    zagfles Posts: 20,374 Forumite
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    brutamuk wrote: »
    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!
    They've not said what the CTC only threshold will be. Or I couldn't find it.

    But that only applies to people who don't work enough hours for WTC. It does not apply to people who work enough hours for WTC but don't get it because of their income level. They use the lower threshold and WTC elements are used in the calculation.
  • clearingout
    clearingout Posts: 3,290 Forumite
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    zagfles wrote: »
    No it only applies to new children born after April 2017, or new claims after then, so you'll still get paid for 3 as long as your award doesn't stop for more than 6 months.

    Thanks, Zagfles. That is how I originally read it - but then when I've looked again, there seems to be something potentially in the migration from Tax Credits to Universal Credit - of course, I can't find it now but it's the wording around 'new Universal Credit' claims and limiting to 2 only.

    Forms seem to be confused on this issue - I am searching around at the moment.

    So assuming the figure £2.4k worse off is more or less correct - what is causing this? The new lower limit for claiming plus the 48p taper thingy (very technical!)? And also the freezing at the current level (or even reducing to 2003 rates - has that happened?!)
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    zagfles wrote: »
    They've not said what the CTC only threshold will be. Or I couldn't find it.

    But that only applies to people who don't work enough hours for WTC. It does not apply to people who work enough hours for WTC but don't get it because of their income level. They use the lower threshold and WTC elements are used in the calculation.

    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
  • Laurensalive
    Laurensalive Posts: 267 Forumite
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    If you have rent to pay. The living wage of £7.20 is not enough.
  • Candy2
    Candy2 Posts: 3 Newbie
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    Can anyone who is clued up on the ins and outs of the budget tell me if carers allowance is included in the benefit freeze please? It's for my carer I need to know. Already clarified dla isn't included in it. Also seeing conflicting info on ESA - am I right in thinking the reduction to the wrag element of ESA only applies to new claims from April and not existing ones please?

    Many thanks for help in a newbie out 😀
  • A_Flock_Of_Sheep
    A_Flock_Of_Sheep Posts: 5,332 Forumite
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    I am a bit confused. I am a disabled worker and get PIP at the enhanced rate for daily living and also working tax credits disabled element.

    My annual part time pay is £11,200 from my job. I currently get £83 a week in working tax credits. I am guessing my income will slide.

    Now wondering if I would be better off leaving my job and going on ESA.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    brutamuk wrote: »
    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!

    As Zagfles says - you have the £6420 (now 3850) threshold applied if you qualify for WTC elements, not if you actually receive any WTC. So even if you only receive CTC you could still be on that threshold.

    If you don't qualify for any WTC elements because you don't work enough hours or don't work at all - you would be on the £16,105 threshold (which will be reduced to 12,125)

    IQ
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    I am a bit confused. I am a disabled worker and get PIP at the enhanced rate for daily living and also working tax credits disabled element.

    My annual part time pay is £11,200 from my job. I currently get £83 a week in working tax credits. I am guessing my income will slide.

    Now wondering if I would be better off leaving my job and going on ESA.

    Your tax credits will fall. Are you single?

    IQ
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