To be shocked about tax credits....

[butterflyroom]

I earn slightly too much to receive tax credits following government changes. My colleague who earns less than me, told me that she receives working tax credits AND child tax credits of around £80 per week. I am shocked at how much this totals monthly!

AIBU to be shocked and to wonder why I work hard and full time to earn more when it's probably not financially that beneficial to do so?

Hard hat at the ready.......

Tax credits are benefits but by a fancier name that labour thought up to try and stop people getting pissed off that more money was being paid out in benefits.

I think child tax credits should be abolished and working tax credits should be paid according to the hours you work.

Wiggle woo there was a time when I worked and was worse off because I have always thought that if I can work I should do . Benefits are there for people who need them not for people who just cannot be bothered to work ,

It is a very short term view to take, I was worse off for about a year but in that time I was paying into my pension and working my way towards a promotion so I would eventually be much better off .

I agree that tax credits subsidise low wages and inflate house prices

True re it being a short term view - maybe. Of course everyone wants a decent pension etc. But the sad fact of our country at the moment is that if you have a decent pension and a house you own then it will basically be used to pay for your elderly care at the same rate that someone else would receive for free had they not bothered. (Been through all this with my gran).

Lots of things are very wrong with our systems. But I suppose what do you do... Do we leave people to starve / old people without care etc? Its difficult finding the balance.

I'm certainly not going to rely on a state pension being around in a few years!

No one will be allowed to starve, but I do think people who haven't made pension provision will have a pretty grim existence. I know a lot of pensions aren't going to be the pot of gold people thought they would, but it's still a wise idea to be investing in your own future, whether it's through a pension or another form of saving.

This pension thing is a difficult one. There are risks with pensions, and dh hates paying his pension because his Dad made bad choices and got screwed over by his pension company. But I think it's the only way because pensions are more protected than property would be if it needs to be sold for care. I'd rather have a good life while I'm young enough to enjoy it and live in a council run care home when/if I ever need to.