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Turning down wage increase to maintain benefits

Hi, wondered if anyone here can answer this. Small number working in an office and the employer has offered a pay rise. The staff have declined the rise as it would cause them to miss out on other benefits, and the rise doesn't make up for the shortfall. Could this affect the benefit entitlement if DWP or Tax Credits were made aware of the decision to decline an offered pay rise?
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Comments

  • Deliberate deprivation of income with a collusive employer.

    What happens if the employer continues to freeze wages until the national minimum wage or living wage forces them to increase the wages?

    The employer should just increase the wages.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • stevemLS
    stevemLS Posts: 1,067 Forumite
    Wow. That's all.
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    For tax credits, can't one simply make voluntary pension contributions, and the income is entirely disregarded?
    So if 1 pound rise, put in 1 pound more to the pension, and you're back in the same position.
    Apart of course once you start to cash in the pension, when you're better off.
  • tea-bag
    tea-bag Posts: 548 Forumite
    500 Posts
    This is one of the things wrong with this country! My wife works in a large retail shop and many of the other workers REFUSE to work a minute more than 16 Hours a week as they lose too much in benefits. It is wrong as there are lots of hours going my wife could work 50 hours if she wanted.
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    tea-bag wrote: »
    This is one of the things wrong with this country! My wife works in a large retail shop and many of the other workers REFUSE to work a minute more than 16 Hours a week as they lose too much in benefits. It is wrong as there are lots of hours going my wife could work 50 hours if she wanted.

    The wrong is often the benefits, not the workers.
    Consider for example people on carers allowance - they may be unable to work >>16 hours due to having to care.
  • meer53
    meer53 Posts: 10,217 Forumite
    Tenth Anniversary 10,000 Posts Combo Breaker
    edited 16 September 2015 at 7:48PM
    SmokieJoe wrote: »
    Hi, wondered if anyone here can answer this. Small number working in an office and the employer has offered a pay rise. The staff have declined the rise as it would cause them to miss out on other benefits, and the rise doesn't make up for the shortfall. Could this affect the benefit entitlement if DWP or Tax Credits were made aware of the decision to decline an offered pay rise?

    How do you decline a pay rise ? Where i work there is no option to do this.
  • TELLIT01
    TELLIT01 Posts: 18,228 Forumite
    Part of the Furniture 10,000 Posts Name Dropper PPI Party Pooper
    tea-bag wrote: »
    This is one of the things wrong with this country! My wife works in a large retail shop and many of the other workers REFUSE to work a minute more than 16 Hours a week as they lose too much in benefits. It is wrong as there are lots of hours going my wife could work 50 hours if she wanted.

    Interesting admission from a poster who regularly berates others to increase their working hours.
  • The original question was put to me by someone who had listened to the Welfare Reform debate, where an MP stated "My hon. Friend might be interested to hear that as a small business owner, I share his experience. I have offered pay rises and additional hours to members of my staff, and they have turned them down because of the tax credits that they would lose as a result." Considering the MP is in favour of cutting benefits, seems strange they didn't simply pay the increase as the rate for the job!
  • tea-bag
    tea-bag Posts: 548 Forumite
    500 Posts
    TELLIT01 wrote: »
    Interesting admission from a poster who regularly berates others to increase their working hours.

    How? My wife works 35 hours a week she could easy do 50 if she wanted due to the amount of overtime hours going at her work!
  • tea-bag wrote: »
    How? My wife works 35 hours a week she could easy do 50 if she wanted due to the amount of overtime hours going at her work!
    The mindset is your wife should work 50 hours to support the people who won't work a minute over 16 hours.
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