to ask if most of you realise the tax credits cuts affect people who work, not the unemployed?

[ssd]

yes, that's right, people who work get tax credits, you must work to get them

the cuts affect people in work, not people who dont work

I'm fed up reading here about the lazy unemployed who will get their tax credits cut...err no they wont.

[BreakingDad77]

Greece has double the percentage of small entrepreneurs

This was before all the problems its probably increased even more now.

[tobysmum77]

Greece has double the percentage of small entrepreneurs

Well there are no jobs so that is likely to be the case.

[NeedsAsockamnesty]

athens.angloinfo.com/information/healthcare/pregnancy-birth/



www.ekathimerini.com/138516/article/ekathimerini/business/cost-of-giving-birth-varies-greatly-from-clinic-to-clinic

[Goshthatsspicy]

Thank you trip

[TripTrapTripTrapOverTheBridge]

Yes Gosh housing benefit will go up to cover part of tax credits lost

[RedDaisyRed]

I have a friend who lives part of the year in Greece and knows this as a fact.

Ah and my search just now in 2 seconds found this
greece.greekreporter.com/2014/10/01/greeks-still-pay-bribes-to-be-treated-properly-in-state-hospitals/

[spinoa]

If you want a baby born on their NHS you have to slip the doctor £2k.

It's amazing how people can write rubbish as if it is a fact.

If you have 2k to spend on a birth in Greece you go to a nice private hospital; you don't mess around with the state healthcare system.

[Babyroobs]

I predict a baby boom before 2017, although people would be best to get moving quickly because if you already have 2 kids and you lose all your tax credits from April 2016 when the thresholds drop, you will then need to open a new claim before April 2017 to get tax credits for 3. It really is going to exclude a lot of families from claiming anything.

[howabout]

I think it would have been better not to raise the personal tax allowance and take a slower pace to reducing tax credits in line with increases in the minimum wage. This would have targeted increases in income at the lowest income groups with family responsibilities better.

I also think the changes will increase the black economy and there will be more Greek style small businesses. 80% + marginal tax rates often have this effect especially when combined with high tax free allowances.

[RedDaisyRed]

Most of them don't pay tax in Greece, they evade it and if you want a baby born on their NHS you have to slip the doctor £2k. It's utterly corrupt and a bankrupt state. labour wants to ensure we have no money to pay for benefits whcih is why the people voted Tory.

[BreakingDad77]

If instead you do a Greece, as labour would have done

The irony is that Greece has double the percentage of small entrepreneurs (Tories love this but its very difficult to collect tax) compared to the EU and also low tax which are tory tenets.

If people and corporations paid tax properly like the majority of us have to we wouldn't be having this conversation.

Also how much of this people honestly turning down work does actually happen and not just DM type hysteria?

[Goshthatsspicy]

Sorry to hear that.

[ssd]

yes, it is, but I can't work out by how much by..

[Goshthatsspicy]

Thank you ssd
I can't remember if you said your personal situation was going to be suffering?

[ssd]

not sure about the HB, theres something about it I'll C&P, but maybe best to check it out further?

sounds like it just for claims made from next year?

"Support for children – In households with two or more children any subsequent children born after April 2017 will not be eligible for further support. Equivalent changes will be made to the Housing Benefit rules. This will also apply in Universal Credit to families who make a new claim from April 2017.

Family element - Those starting a family after April 2017 will no longer be eligible for the Family Element in tax credits. The equivalent in Universal Credit, known as the first child premium, will also not be available for new claims after April 2017. In Housing Benefit, the family premium will be withdrawn for new claims from April 2016."

[ssd]

this is the amount I was referring to

"Income threshold reduction - From April 2016, the level of earnings at which a household’s tax credits and Universal Credit award starts to be withdrawn for every extra pound earned will be reduced from £6,420 to £3,850"

meaning tax credits start to be withdrawn sooner.

[Goshthatsspicy]

We get a small amount of housing benefit. I'm assuming if the tax credits go down, the HB should go up?

[Goshthatsspicy]

Thank you ssd very detailed.
I'm trying to work out if our family will be better off if l return to work full time (on min wage)

[ssd]

I found this online, sorry for the big massive copy and paste...

From April 2016

Benefit and Tax Credit rates frozen for four years
Benefit Cap reduced
Tax Credits withdrawn sooner and at a faster rate as income rises
In year increases in income of over £2500 taken into account for Tax Credits
Housing Benefit family premium abolished
Housing Benefit backdating reduced
Universal Credit work allowances reduced
Social Housing rents to be reduced by 1% every year for four years
National Minimum Wage increase
Personal Tax Allowance increase
For more details about these changes and who will be affected see Benefit Changes April 2016

From April 2017

Child Tax Credit limited to 2 children and family element abolished for new claims or new births
Universal Credit limited to 2 children and 'first child premium' abolished for new claims or new births
Housing Benefit not available for unemployed 18-21 year olds (exceptions apply)
Parents claiming Universal Credit to look for work when youngest child turns 3
Universal Credit youth obligation for 18-21 year olds
Employment and Support Allowance Work Related Activity component abolished
Universal Credit Limited Capability for Work component abolished
Free childcare increased from 15 to 30 hours per week for 3 and 4 year olds
Social tenants earning over £30,000 (£40,000 in London) to pay market rate rents
Free TV licence for over 75s to be funded by BBC

[ssd]

sorry, that should read for anyone having a third baby from 2017 onwards

[ssd]

with tax credits, the income disregard is coming down, by around £1400, so the amount you can earn is lower than the previous amount before you start being penalised for earning.

there is a calculator somewhere that shows the amount you will lose by , from next year

the 2 child thing is for anyone having a new baby from 2017 onwards, kids born before that dont count

[Goshthatsspicy]

The tax credit cut, what is happening exactly? Are we talking about the two child max /new claim?
red what happens if no promotion ever comes? What if no more hours are ever available?
I understand why those in favour of self reliance *are, but it seems shortsighted. It doesn't work in every situation.

[ssd]

Ok, red. I must have read you wrong.

[BathtimeFunkster]

Tax credits cut from next year. Yet the living wage wont be fully here til 2020.

The "living wage" that won't be fully introduced for 5 years was calculated as such based on tax credits at their current level.

If you cut the tax credits, it is no longer a loving wage.

[RedDaisyRed]

ssd, not sure what you mean. They way to help those less well off is ensure we can continue to function as a state and pay for the welfare state. So these measure help those less well off. If instead you do a Greece, as labour would have done, they you cannot pay anything to anyone. Secondly, if people have to up their hours or move or both work full time that is in the longer term good for them as they can come off tax credits altogether as they get promotions and work their way up. Again that shows these measures are ultimately caring and help people.