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Tax credits reduce incentive to work more?

(127 Posts)
11stone4 Thu 07-Feb-13 17:11:51

My best friend Has found this to be the case. The more hours she works the less tax credits she gets. So what's the point exactly to work longer hours to get working and child tax credits to be reduced. I'm a SAHM FWIW

Takver Sun 10-Feb-13 21:41:40

" I think we all just passed the mythical £1000 around and then it went back to someone's dad."
Maybe you moved in different circles to the average?

You definitely had to be unemployed (and eligible to claim benefits), though. I don't remember how long you had to have been signing on, but I think possibly 6 months. Certainly round us there were various workshops/training sessions linked to it which I don't remember having such strict criteria. DH went on some useful ones for basic book keeping as he was starting out on his own, (he had left his job to do so & didn't get the 40 quid a week).

TBH I think though you will inevitably end up giving some of the money to people who would be self employed anyway (like your journalist friends), there is a case to be made for this sort of support. There is a very high % of self employed people where I live now (I believe the highest of any county in the UK) and an awful lot of people depend on tax credits to get them through the first couple of years. But in the longer term it often gets them out of the low wage economy & potentially even in the future employing others.

needmoretogetby Thu 03-Jul-14 10:12:16

I work 25.5 hrs a week and thats over 3 full days and 3 hrs on the 4th day.Am i entitled to claim social for the rest? I know the 3hrs on the 4th day was stopping me before but has its all changed?

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