Another new tax on housing for hard working families

michaels

Personally I don't understand why local authorities don't charge market rents for their council housing, those who could afford to move out would do so as there would no longer be a big advantage to staying and so property would be freed up for those who need it. and the clever bit is the council would presumably be much better off because the housing benefit part of any rent is paid by central govt and along with al the extra rent from those who wouldn't get housing benefit the council would have lots more cash to fund social care etc for those who really need it rather than just spending most of their income subsidising the rents of a lucky few.

leveller2911

Drp8713 wrote: »

Someone earning £40k a year gets housing benefit and tax credits? Really.

Child benefit, yes. But surely somebody earning £40k wouldnt qualify for any other benefits.

No..........

The tax credits earning threshold was around £25k per household which I believe the Government are reducing to around £22k iirc so the answer is no they wouldn't be entitled to working tax credits ,Housing benefit or council tax benefit.

When the Govt first bought out the details of the plans it was only going to affect new tenants and not existing so all existing tenants wouldn't be affected . I'm not sure the BBC have got their facts right.

CLAPTON

Drp8713 wrote: »

Someone earning £40k a year gets housing benefit and tax credits? Really.

Child benefit, yes. But surely somebody earning £40k wouldnt qualify for any other benefits.

of course they are entitled to benefits depending upon council tax and rent

so in the case of a single parent earning 40,000 with 3 kids and living in wandsworth they would receive
about 2k tax credits
about 9k housing benefit
aout 1.5k child allowance

leveller2911

CLAPTON wrote: »

of course they are entitled to benefits depending upon council tax and rent

so in the case of a single parent earning 40,000 with 3 kids and living in wandsworth they would receive
about 2k tax credits
about 9k housing benefit
aout 1.5k child allowance

Can you post the links to show that because I'm not sure that right.


According to the link below there isn't any entitlement to tax credits if the household income is £40k. Its the combined household income its based on.



https://www.gov.uk/government/publications/tax-credits-entitlement-table-working-at-least-16-hours-and-no-childcare/tax-credits-entitlement-table-working-at-least-16-hours-and-no-childcare

CLAPTON

leveller2911 wrote: »

Can you post the links to show that because I'm not sure that right.


According to the link below there isn't any entitlement to tax credits if the household income is £40k. Its the combined household income its based on.



https://www.gov.uk/government/publications/tax-credits-entitlement-table-working-at-least-16-hours-and-no-childcare/tax-credits-entitlement-table-working-at-least-16-hours-and-no-childcare

I used 'entitledto' and assumed
-40k income
-6k pension payment
-3 kids (2 under 4 and one 5-10
-council tenant
-band d council tax
-wandsworth (London)
and using current majority system (i.e old one)

Mistermeaner

Why does the withdrawal of subsidies get referred to as tax? It was the same bedroom tax.

It implies the recipient earns it.

wymondham

London is its own principality isn't it... completely alien to the rest of the country. £40k anywhere else and you'd be in the top earnings with a lovely house, not considered to be poor and in need of aid..... The dream of living in London is lost on me I'm afraid...

System

Another new tax on housing for hard working families

Why does the word 'tax' keep being redefined when it's new use is not a tax

First it was a reduction in benefit (aka bedroom 'tax') and now its a reduction in subsidy.

IT IS NOT A TAX!

It's like claiming that a supermarket stopping a BOGOF is a tax or DFS stopping their perpetual sales and charging full price

GunJack

wymondham wrote: »

£40k anywhere else and you'd be in the top earnings with a lovely house, not considered to be poor and in need of aid.....

I think that is over-stating it somewhat. Whilst you could be comfortable, I wouldn't say in the top earnings....

lawriejones1

Personally I don't understand why local authorities don't charge market rents for their council housing, those who could afford to move out would do so as there would no longer be a big advantage to staying and so property would be freed up for those who need it. and the clever bit is the council would presumably be much better off because the housing benefit part of any rent is paid by central govt and along with al the extra rent from those who wouldn't get housing benefit the council would have lots more cash to fund social care etc for those who really need it rather than just spending most of their income subsidising the rents of a lucky few.

Are you serious? The reason they charge low rents is because if they charged market rents these people couldn't afford them. They would then become homeless and need to be housed by, you guessed it, the taxpayer so the Council settlement would be reduced.

It does seem off were subsidising people to live in flats and houses when their combined earnings are very high. But it's a complicated system, that's for sure.