Tax Credits

MFW_ASAP

The solution, once again, seems to be that if you can't afford to have children, then don't expect other people to pay for them.

andrewmp

MFW_ASAP wrote: »

The solution, once again, seems to be that if you can't afford to have children, then don't expect other people to pay for them.

Should there be an exemption for people who could fully afford to have children but due to a change in circumstances might be a bit worse off?

Or should you only have kids once you've saved up the money to raise them for 18 years? If so, who will pay the next generation of state pensions as very few would be having kids?

Graham_Devon

MFW_ASAP wrote: »

The solution, once again, seems to be that if you can't afford to have children, then don't expect other people to pay for them.

The solution, as far as I can see it is to reduce tax credits at a much lower rate, while working on the wage side of things.

The overarching point from the tories is a decent one. Employers should pay the wages, not the public purse. It's just the way they are going about it that's causing so much fuss.

The solution is simple - don't cut so hard and so fast. Cut gradually.

michaels

Graham_Devon wrote: »

The debate is likely to get a bit heated today as the lords look to put forward a fatal motion.

The Tories are warning them sternly not to do so.

The media are suggesting it would be a monumental move by the lords.

However, this is why they are looking to put the motion forward.



I believe that INCLUDES all the extra stuff the tories are saying will reduce the burden of the cuts.

The middle couple earn 26k before tax and will also benefit from more free childcare once the baby is bigger allowing the 16 hour worker to work longer hours. How much tax credits do this couple need?

andrewmp

Graham_Devon wrote: »

The solution, as far as I can see it is to reduce tax credits at a much lower rate, while working on the wage side of things.

The overarching point from the tories is a decent one. Employers should pay the wages, not the public purse. It's just the way they are going about it that's causing so much fuss.

The solution is simple - don't cut so hard and so fast. Cut gradually.

I would agree with that, then the increased wages (eventually) would mean less and less will be paid out on tax credits organically.

gadgetmind

Or get a time machine, go back to 2002, and don't introduce these credits in the first place.

andrewmp

gadgetmind wrote: »

Or get a time machine, go back to 2002, and don't introduce these credits in the first place.

There's always been some form of working benefit for low paid working families. I take your point though. I do think it improved the quality of life for the low paid with kids, it probably equalised everything though, meaning the difference between a family earning £20k a year and £30k a year was not so pronounced.

The worst thing they did, in my opinion, was allowing the unemployed to claim what was (until this point) a working family benefit. This obviously made the cost sky rocket (obviously the income support bill would have gone down a load at the same time though).

I also feel the combined hours for a family was too low, I believe this is being addressed in Universal Credit anyway though.

Graham_Devon

michaels wrote: »

The middle couple earn 26k before tax and will also benefit from more free childcare once the baby is bigger allowing the 16 hour worker to work longer hours. How much tax credits do this couple need?

This has been discussed several times in the media with the tories claiming more childcare sorts out earning issues. It doesn't.

In theory, yes, they can work longer hours. Much of the time though they are low income precisely because they cannot get longer hours. Have a look at tesco jobs for instance, the vast majority are all part time 20 hour jobs at weird times.

If the jobs are there, all is fine and dandy. But that's textbook stuff, it's not real world stuff.

andrewmp

michaels wrote: »

The middle couple earn 26k before tax and will also benefit from more free childcare once the baby is bigger allowing the 16 hour worker to work longer hours. How much tax credits do this couple need?

Not until 2017 (at the earliest) they won't.

Graham_Devon

Just heard a tory MP commenting that the house of lords is overstepping the mark. "How do they know George Osbourne will implement the full changes" he asks before suggesting there is no need for all of this.

Seems somewhat poor, and looking like the beginnings of a U-Turn.