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

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  • A_Flock_Of_Sheep
    A_Flock_Of_Sheep Posts: 5,332 Forumite
    First Anniversary First Post Combo Breaker PPI Party Pooper
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    Icequeen99 wrote: »
    Your tax credits will fall. Are you single?

    IQ

    Yes I am single, no kids. I thought the government were protecting disabled related benefits? I get a higher amount of tax credits because I get enhanced daily living PIP.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    Yes I am single, no kids. I thought the government were protecting disabled related benefits?

    The taper and threshold changes in tax credits will affect a whole tax credits award - no protection for the disability elements for those changes.

    Assuming income of 11200 for both 15/16 and 16/17 then I calculate your current award as around £4245 and your new award will be around £2772.

    IQ
  • Laurensalive
    Laurensalive Posts: 267 Forumite
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    The people who have made this budget have never had to go hungry to feed a child. Work is hard to find for some people, the older person and female. When they do get a job then have to find how to live on the low income. Pay rent, transport costs. I know mothers have to make the hard choices.
    I know some are lucky. But most are not. Companies moaned when the minimum wage was introduced. I think the living wage should have been set to the correct limit today. However even this is not high enough for those who have to pay rent.

    VOTE IN THE EUROPE REFERENDUM AND KICK THE GOVERNMENT IN THE TEETH.
    I WILL VOTE OUT.
  • Chesh375
    Chesh375 Posts: 7 Forumite
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    It's all very confusing!

    We loose due tot the taper in tax credits, but it doesn't help when one calculator says 1.3k a year (bbc) and another says about 2.4k a year (guRdian or telegraph).

    I did a rough calc using the 41% taper before I realised it was increasing to 48% and got just over 1k so am aiming more to the bbc one.

    Glad sorted the three child only comes into new claims or new children after April 2017 as long when transferred to universal credit they don't class as new claim and mess it up
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    Chesh375 wrote: »
    It's all very confusing!

    We loose due tot the taper in tax credits, but it doesn't help when one calculator says 1.3k a year (bbc) and another says about 2.4k a year (guRdian or telegraph).

    I did a rough calc using the 41% taper before I realised it was increasing to 48% and got just over 1k so am aiming more to the bbc one.

    Glad sorted the three child only comes into new claims or new children after April 2017 as long when transferred to universal credit they don't class as new claim and mess it up

    If you quote your figures, I can do the calc for you - just need the income figure and how many children/disabilities/childcare costs etc.
    IQ
  • brutamuk
    brutamuk Posts: 6 Forumite
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    That's a relief. Though we may lose the lot for a minute.

    So what criteria stops us getting wtc at the minute?
    Myself and my partner work 17hrs and 37hrs per week respectively.
    Our joint income last year was £35777.
    Which of these takes us out of the wtc threshold.
  • Chesh375
    Chesh375 Posts: 7 Forumite
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    Icequeen99 wrote: »
    If you quote your figures, I can do the calc for you - just need the income figure and how many children/disabilities/childcare costs etc.
    IQ

    Really, thanks!

    23k income, partner receives carers also which is about 3.1k
    Children is 3, 2 disabled one is severe, and waiting on dla claim confirmation on the 3rd
  • A_Flock_Of_Sheep
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    Icequeen99 wrote: »
    The taper and threshold changes in tax credits will affect a whole tax credits award - no protection for the disability elements for those changes.

    Assuming income of 11200 for both 15/16 and 16/17 then I calculate your current award as around £4245 and your new award will be around £2772.

    IQ

    Oh so I will be strugglingt o afford to live then. I would be better off quitting my job and going on ESA. Thought the government was trying to discourage unemployment.

    So if I reduced my hours down to 16 hours I would earn £7964 a year from my work how would that affect my WTC?

    A drop in income of £2k would be a lot - On ESA I would get subsidised council tax and other disabled premium and I wouldn't need to bother getting up for work either.
  • bloolagoon
    bloolagoon Posts: 7,973 Forumite
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    Oh so I will be strugglingt o afford to live then. I would be better off quitting my job and going on ESA. Thought the government was trying to discourage unemployment.

    So if I reduced my hours down to 16 hours I would earn £7964 a year from my work how would that affect my WTC?

    A drop in income of £2k would be a lot - On ESA I would get subsidised council tax and other disabled premium and I wouldn't need to bother getting up for work either.
    you have that choice if it suits you, this is an option
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  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    Oh so I will be strugglingt o afford to live then. I would be better off quitting my job and going on ESA. Thought the government was trying to discourage unemployment.

    So if I reduced my hours down to 16 hours I would earn £7964 a year from my work how would that affect my WTC?

    A drop in income of £2k would be a lot - On ESA I would get subsidised council tax and other disabled premium and I wouldn't need to bother getting up for work either.

    But how can you be sure you would get ESA?

    If your earnings reduce then your tax credits would increase but i can't see you would be any better off than now. Besides, in the first year they would treat you as earning 10,500 even if you only received 8k, so you wouldn't see the full rise in tax credits for some time.

    IQ
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