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AIBU?

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Original poster

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

370 replies

ssd · 03/08/2015 10:41

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.

OP posts:
tobysmum77 · 03/08/2015 20:57

meant to say they know what my salary is, not the joint one.

LuisSuarezTeeth · 03/08/2015 21:14

It amazes me, people getting annoyed at having their free money cut. They have had it all this time to save them the bother of training or otherwise earning more money for themselves. Now they'll have to

Does it? Of course that's why people claim tax credits, they can't be "bothered".

Hmm
SoftKittyWarmKitty · 03/08/2015 21:31

I'm a working lone parent of one and will lose about £1500pa in WTCs from next April, so I'll be living off over £120 per month less than I currently receive. I'm already looking for a better paying job and considering ways to increase my income by combining employment with self-employment to try and make up the shortfall. I can't lie though - I'm scared worried.

Lurkedforever1 · 03/08/2015 21:38

Tbh I don't assume anyone out of work must be a scrounger either, I'm sympathetic to anyone who's struggling financially when they're trying their best, whether that's low wages or no wages. I don't think it's somehow worse if someones also employed. It's shit either way

amothersplaceisinthewrong · 03/08/2015 21:42

Yes, of course I realise that I as a tax payer am paying to support employers who pay less than is needed to live on forcing people to claim tax credits.

NeedsAsockamnesty · 03/08/2015 21:44

Prelude those who are carers and getting carers allowance won't have anything cut. It's only if in receipt of Working Tax Credits, which carers aren't unless someone is working. Then, if they or their partner is working, it's been rumoured that the Carers Allowance will not be included for the threshold

Lots of carers also work, many of them in low paid employment they can work 16 HPW without a problem for CA or more if they have childcare costs or a few other deductions. If they do decide to include CA in the threshold it will impact on lots of carers.

I know quite a few work just so they can get some respite

Babyroobs · 03/08/2015 21:50

Child tax credits are paid to people who don't work and have never worked - the only condition to receiving them is having a child. Child tax credits also go to families where one parent may work but the other stays home, I know families that choose to have a sahp untill the Kids are teenagers and get a lot in top up tax credits.

BettyCatKitten · 03/08/2015 21:51

Where are all these extra hours everyone is going to work going to be suddenly conjured from?
Especially given that retail will no doubt be hit as people will have less money to spend Confused

NeedsAsockamnesty · 03/08/2015 21:53

Child tax credits are paid to people who don't work and have never worked - the only condition to receiving them is having a child. Child tax credits also go to families where one parent may work but the other stays home, I know families that choose to have a sahp untill the Kids are teenagers and get a lot in top up tax credits

The reduction due to the change in the income threshold will only effect working households it will not effect households that have no earned income that's why it's called an income threshold

Babyroobs · 03/08/2015 21:55

I have quite a few colleauges who currently turn down extra hours/ overtime because they will lose tax credits. I have one colleauge who had one 14 year old ds and works just 8 hours a week ( she has a working dh on a on a low income ). She won't increase her hours as she will lose tax credits. My workplace are crying out for decent experienced workers rather than using agency staff.

Babyroobs · 03/08/2015 21:57

Needs - surely benefits such as JSA will count as income or perhaps they don't?

NeedsAsockamnesty · 03/08/2015 22:03

Only contribution based currently not income based

diploddycus · 03/08/2015 22:06

No, Babyroobs, other benefits such as JSA or income support don't count as income for tax credits.

It is not just WTC that is being cut. If you get CTC and earn over the threshold (can't remember what it's being cut to - £3,000ish?) then your tax credits will go down.

Lurkedforever1 · 03/08/2015 22:06

To get income based jsa your income is way too low to hit even the Tory threshold, so no doesn't count for tax credits etc

SittingOnTheMoon · 03/08/2015 22:10

Yep, from next April, once all essential bills have been paid (no sky, alcohol, smoking etc) I'll have £35 a week for clothes, food, travel etc for 2 adults and a 16 year old. My OH can't increase his hours or get another job as he's on different hours/days every week and there aren't the jobs, we can't move as we can't afford to plus we're in the cheapest rented we could find. (I have several health conditions but can't get esa as OH works)

I really don't know what we're going to do. Sad

Babyroobs · 03/08/2015 22:13

Yes I read on another forum ( so not exactly sure of the accuracy) that the thresholds will fall a lot for Ctc. With no childcare costs or disabilities the thresholds are one child 21K ( down from £26k), two kids 26.5K ( down from £32k) and three kids 32K ( down from approx 38K), so big drops for a lot of people and a lot of families who would previously get some help will get none from April. I was quite shocked at just how much they are being cut.

diploddycus · 03/08/2015 22:17

I don't think it is upper earnings threshold that is changing, although it might be in a way. It's the rate that tax credits are paid at that is changing.

The family earning 20,000 with one child will receive less tax credits.

NeedsAsockamnesty · 03/08/2015 22:20

To get income based jsa your income is way too low to hit even the Tory threshold, so no doesn't count for tax credits etc

Not with the the disregard being lowered they are not, income basd JSA is £73pw if over 25

lemoncordial · 03/08/2015 22:20

sitting have you looked into whether you are entitled to PIP due to your illness?

springlamb · 03/08/2015 22:23

Carers don't have a specified number of hours they can work without losing their CA - they are allowed to earn £106 a week, anything over that and you lose the whole lot. The jump between £106 and the approx £170 you'd need to earn to break even is often the difference between being able to do the job.
But you still have to do the caring 24/7.
That's why there should be a sliding scale for the loss of carer's allowance.

LuluJakey1 · 03/08/2015 22:27

And people voted Tory! No point moaning now if you are one of the ones who voted for them.

Viviennemary · 03/08/2015 22:27

Not everyone who gets tax credits is low paid. All these tax credits doled out so lavishly are the fruits of somebody else paying tax . Who might be on quite a low wage themselves much lower in some cases than people getting the tax credits.

Caryam · 03/08/2015 22:31

lemoncordial - You only get PIP if you need someone to help you do basic everyday tasks. You may be able to dress and feed yourself, but still not able to work.

SittingOnTheMoon · 03/08/2015 22:35

Lemon, I can't get anything, they even stopped paying my NI as I was too ill to attend the medical. I told them why and requested a home apt, 3 days later my P45 came through the letterbox.

I could claim again but I'll still have to be well enough to get to the appt before they'll do anything.

At the moment I'm not up to dealing with them, I'm sleeping 16 hours a day and am shattered the other 8. I'll wait till this passes then try again.

ginorwine · 03/08/2015 22:37

Someone I kno who is self employed says they earn below whatever amount it is before tax is paid to get this credit . How does it affect people who do this?
I'm not saying it's the norm .
To me this is abuse as its getting tax credit when the earnings exceed the limits . Basically they get , or say they do , 250 pw in these benefits . That's my weekly wage .