I find this astounding.
A nuclear family in one of the outer London boroughs (2 parents, 2 kids) with husband sole breadwinner will have an income of £30,007 (£577 per week) on a £40k wage plus child benefit of £1,750 per year or £33 per week. Council tax is approx £30 pw. A travelcard from zone 4 into town is £43.60 per week.
Pay in full for school meals.
Pay in full for prescriptions.
Weekly total (minus council tax and travelcard) of: £536.
A nuclear family where both parents are unemployed in London would get;
child benefit x 2: £33
child tax credits x 2: £115
2 bedroom LHA allowance (outer London) of: £236 or 3 bed if children are different sexes and over a certain age: £300
income support/jobseekers allowance: £112.55.
No or little council tax to pay.
Free school meals.
Free prescriptions.
Weekly total of: £497 (2 children both same sex) or £560 (if different sexes or one over ten).
So, the household with one earner on £40k per week is at the most £39 a week better off than their unemployed counterpart and the unemployed family is not affected by the benefit cap unless they claim the 3 bedroom rate of LHA.
Work really doesn't pay does it.
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A worker on £40k per year is £39 pw better off than his unemployed counterpart.
180 replies
orwellian · 16/10/2013 15:40
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