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

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  • zagfles
    zagfles Posts: 20,550 Forumite
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    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?!)
    The threshold change will reduce tax credits by £1233 for everyone who earns over £6420.

    The taper change will cut tax credits by 7% of income over £6420 in addition.

    So if you earn £16420 you'd lose 1233+700=£1933
    If you earn £26420 you'd lose 1233+1400=£2633
  • A_Flock_Of_Sheep
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    bloolagoon wrote: »
    you have that choice if it suits you, this is an option

    Yeh but the option that suits isn't what the government is trying to encourage is it? They keep droning on about people working yet they are pushing me into unemployment as it's more financially viable.

    I mean what job pays £3,850 so you can get full tax credits entitlement. That's just £74 a week. The dole pays that - no one would work for £74 a week.

    Crikey my boss will be well pleased tomorrow as I announce a pending possible resignation. They have just recently spent about £8,500 on training. Oh well they can write to old Georgey and Dave to express their concern.
  • Miroslav
    Miroslav Posts: 6,193 Forumite
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    edited 8 July 2015 at 10:17PM
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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.

    Better in work than out, which is why I will continue in work despite not being much better off.
    Icequeen99 wrote: »
    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

    When my hours reduced from 24 to 22 in March, I lost £23 of WTC p/w too.

    I didn't earn anything in 12/13 aside ESA, so I guess my 13/14 WTC was based on something else? 15/16 is when my WTC went down £23 p/w, so I guess that was because of the difference in earnings from 13/14 to 14/15 as I staertd work July 2013?
  • A_Flock_Of_Sheep
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    Icequeen99 wrote: »
    But how can you be sure you would get ESA?


    IQ

    Disabled person I should get 15 points under the mobility criteria for the support group. If I didn't I would tribunal the DWP to the bones of their aaaarse.
  • glennamy
    glennamy Posts: 2,084 Forumite
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    Candy2 wrote: »
    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 😀

    Carers Allowance is part of DLA/PIP and is not subject to being frozen - more importantly it is not being made subject to income tax, which would have provided a massive headache...

    Correct on WRAG Candy2, however once this date has passed, if someone goes into work and then subsequently has to stop work, they will be under the new rates...

    Glenn
    Can't Smile Without You
  • Blindsided_2
    Blindsided_2 Posts: 187 Forumite
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    I can't work out if I am affected or not. I get ctc for two children (both with severe disability premium) but I'm thinking due to claiming income support and carers allowance I will no longer be entitled.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    Blindsided wrote: »
    I can't work out if I am affected or not. I get ctc for two children (both with severe disability premium) but I'm thinking due to claiming income support and carers allowance I will no longer be entitled.

    If you get income support then you won't be affected by the cuts to tax credits from April 2016.

    IQ
  • A_Flock_Of_Sheep
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    Another way would be to reduce my income by buying added years into my occupational pension. I think when you do that your declared income is then your gross minus any added years. And I get tax relief on that.

    I thought if your income changed you told the tax credits office immediately and they adjusted your tax credits accordingly not treated you as having a set amount? I have never been treated as having £10,500 at any time - always what my declared income has been?
  • porkev
    porkev Posts: 100 Forumite
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    I know I am a thicko where moneys concerned but surely if everyone and I mean everyone (big firms and rich people included with no loopholes) paid 10p in the pound tax for every pound we earned, there would be so much money around we wouldn't know what to do with it all, can't be that simple though :)
    one day my ship will come in and with my luck i will be at the airport:rolleyes:

    Amazon sellers club member 0059
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    Another way would be to reduce my income by buying added years into my occupational pension. I think when you do that your declared income is then your gross minus any added years. And I get tax relief on that.

    I thought if your income changed you told the tax credits office immediately and they adjusted your tax credits accordingly not treated you as having a set amount? I have never been treated as having £10,500 at any time - always what my declared income has been?

    I was telling you what would happen if you dropped your salary from 11,500 to 8000 (or just below). The first 2,500 of falls in income from one tax year to another is disregarded.

    So say your income for 15/16 is 11, 500 and on 6 April 2016 you drop your hours so your 16/17 income is £8000. 16/17 would be based on 10,500 because of the disregard. Only from April 2017 would they actually use the 8000.

    IQ
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