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AIBU?

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Original poster

To ask about child tax credit cuts.

478 replies

yellowbird11 · 23/10/2015 16:09

Is it inevitable and if so will it affect everyone? what a massive worry to all of you who are going to be affected.My DD works 16 hours a week and has 1 child. She'd love to do more hours as her child is at school but isn't able to. Can anyone give me any idea how much she'll lose, and when? I'm so worried for her because I know without these tax credits they'll be barely able to eat and keep warm. How can these Tory bs sleep at night?

OP posts:
howabout · 23/10/2015 16:59

dreaming 60% of all households raising children are NOT only working 16 hours a week. A more typical example would be a 2 parent family with 2 children with a FT worker earning NMW or even already earning the 2020 living wage. They will lose out.

In many of these cases childcare costs (only recoverable at 70%) together with marginal tax starting at 48% for the second earner make the 2nd earner getting a job to make up the difference uneconomic. The primary earner will face a marginal tax rate of 81% if they wish to work harder to make up the difference. (Splitting the 1st job and being able to make fuller use of both their personal allowances would improve their position considerably without any more work being done in total).

Manor only the independently wealthy are not relying on the state to fund their lifestyles and even then they are relying on the stability of society which the state creates and the state not suddenly deciding to change the taxation of wealth.

KingJoffreyLikesJaffaCakes · 23/10/2015 17:00

Am I right in thinking that minimum wage is going up when tax credits go down?

wasonthelist · 23/10/2015 17:02

100% agree fairylea. I'm not affected, but I am not stupid enough to beleive that's solely due to my superior choices and hard work. It's partly,maybe mostly, good luck. There but for the grace of God go I.

Sonnet · 23/10/2015 17:03

Single parents didn't set up this ridiculous System where working 16 hours is enough because tax credit's top you up - that maybe true Yellowbird but she chose to take advantage of it despite being capable of working more hours.
Sadly, she isn't the only one in this situation.

Babyroobs · 23/10/2015 17:03

The problem is Pyjama that some don't increase their hours. Like I said I have a few work colleuagues who each have one teenage child and they still work 16 hours ( their kids are 14 / 15 years of age !). They won't do a days overtime or increase their hours as they will lose tax credits. These are all lone parents who have supportive ex partners who have the kids at weekends etc. These colleuagues will no doubt have to do more hours if their tax credits get cut. I do feel for those lone parents already doing as many hours as they can who will be affected.

ManorGreyhound · 23/10/2015 17:04

Fairylea People always have a choice. People in low paid, menial jobs had a choice to do better at school, people have a choice to think very, very carefully before having DCs with an unsuitable partner etc, etc...

People don't just land in reduced circumstances by magic, there is always a backstory. There is often a varying degree of personal responsibility, but to just wake up one day and say "oh look, I've got no money and my DCs are hungry" as if it has just landed from the sky with no input from you really isn't good enough.

fanjoforthemammaries7850 · 23/10/2015 17:04

Yes taking people over the threshold so they will still lose them.

I don't get them although I only work very part time

I'd never bang on about DH''s wages paying for people's tax credits though. Cringing for the people who posted that.

Darkbehindthecurtain · 23/10/2015 17:05

So people should only work part time because otherwise they need more money in childcare costs?

Seriously?

Pyjamaramadrama · 23/10/2015 17:05

Manorgreyhound I do believe in personal responsibility however I don't agree that you can foresee every set of circumstances. People make what can be seen as poor choices for many reasons, I particularly feel for women who've left abusive relationships.

I would prefer to live in a supportive society, I believe in a welfare state however I think that rules needed to be tweaked to give some a shove to be more independent but these cuts are actually going to hit single parents who are rely trying, who are working lots of hours. Not just the part timers.

fanjoforthemammaries7850 · 23/10/2015 17:05

Total x post, I was answering the question regarding minimum wage

wasonthelist · 23/10/2015 17:06

KingJ Yes min wage goes up - but TC cuts happen before that and the min wage increase doesn't make up for the losses - especially for those earning just a little more than nmw already.

Darkbehindthecurtain · 23/10/2015 17:06

It's an unfortunate fact that everything is harder when you're a single parent, which does not give a get out of jail free card to every point raised. By the way, I am a single parent.

Pyjamaramadrama · 23/10/2015 17:08

Dark I'm not saying that, I'm saying that if all the single parents suddenly went to work full time they would either be unable to afford childcare, or they'd claim it through tax credits and cost the tax payer more.

Sonnet · 23/10/2015 17:08

Pyjama I totally agree that single parents need additional childcare support and would be all for a system whereby there childcare was paid for by the state. As the child becomes older and needs less childcare then their dependency on the state decreases. There is a similar decision making process to be made in a dual income family whereby with both parents working they do not need any child tax credit's but one could argue that one of the wages is completely spent on childcare. But this is only for a short time. I know many dual income families who have had to go through this.

EnthusiasmDisturbed · 23/10/2015 17:09

we need people in menial jobs

the problem is that they are being paid a very low wage

not everyone can be a high achiever, not everyone wants to be and not everyone has the confidence to be due to circumstances that are beyond their control

Fairylea · 23/10/2015 17:09

Manor I'm sure you and I have argued this when you used another name, you sound very familiar.

You are wrong to think the answer to everything is to make better choices / work harder / do better at school. Yes most people would agree that is a wonderful thing to aspire to but it is not possible for everyone due to life circumstances and choices and you are naive if you believe otherwise.

wasonthelist · 23/10/2015 17:09

People in low paid, menial jobs had a choice to do better at school

Of all the utterly incorrect, mean-spirited, nasty morally bankrupt stuff I've seen posted recently, this takes the biscuit. It is pure, unadulterated, nasty, bollocks.

ghostyslovesheep · 23/10/2015 17:09

what choice do I have Dark I work - I am a lone parent with 3 kids and my pay and hours have been capped by Government cuts and legislation - because I work in the public sector

I work hard - I pay tax and I raise my kids - I am doing nothing 'wrong' but still I am being penalised

I KNOW it's supposed to make me, and people like me, join the anti benefits bandwagon but causing us to resent those who don't work but it wont

It's no good banging on about the living wage - I earn above that - but I still need CTC to pay childcare

Darkbehindthecurtain · 23/10/2015 17:09

I believe that childcare that is in some way state subsidised will make a huge difference to those reliant on benefits or on a low income.

ihavenonameonhere · 23/10/2015 17:09

I presume then she is looking for another job where she does work full time and doesn't expect the government to top up her earning.

Also min wage is going up over the next few years and her tax threshold is going up.

We simply can't afford for people to choose to work part time.

Fairylea · 23/10/2015 17:10

And by choices I mean the type of choice like caring for a terminally ill close relative over going to university.

fanjoforthemammaries7850 · 23/10/2015 17:10

People in low paid, menial jobs had a choice to do better at school

That is so simplistic.

fanjoforthemammaries7850 · 23/10/2015 17:10

I did very well indeed at school and have a fairly menial job because of life circumstances.

Sonnet · 23/10/2015 17:11

Agree Dark

ManorGreyhound · 23/10/2015 17:11

Manor only the independently wealthy are not relying on the state to fund their lifestyles and even then they are relying on the stability of society which the state creates and the state not suddenly deciding to change the taxation of wealth.

This just isn't true. Spending on the Welfare State vastly exceeds spending on law and order, for example. Trying to suggest the two are comparable is a fallacious argument.

There are many people who are net contributors to the system - ironically, it is the independently wealthy who are largely protected from taxation. It is the folk like DH and me who get a proper rinsing via PAYE.

I worked out that last year, I personally paid nearly £10k per 7 minute GP appointment that I had.

Makes me weep, it really does. I even had to pay for the sodding prescription.