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Will the new minimum wage affect benefits?

(3 Posts)
RudeElf Mon 15-Feb-16 20:46:58

if someone works £35 hours per week they will be £910 a year better off but will the mean they will have any means tested benefits or tax credits cut by the same amount? I know you have to report any change in circumstance to relevant agencies and they suspend your claim (some not all) until they recalculate what you are now entitled to. So will people be in a "give with one hand, take with the other" situation?

lougle Mon 15-Feb-16 21:00:47

Yes. Tax credits are deducted at 41p in the £1 (gross). HB is deducted at 65p in the £1 net. CTax is 20p in the £1 net.

Oldsu Tue 16-Feb-16 23:29:50

Of course any increase in income will affect income based benefits, why shouldn't it?

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