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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

AIBU to think its become shameful to admit to getting tax credits?

261 replies

smallspikyleaves · 18/03/2016 16:48

it certainly is in my circle

I have had mine reduced recently and was moaning about it Blush only for most of my friends to be kind of like, oh we don't get any anymore. when I would actually put money on that they actually do

It just used to be a given that most people with families got some. and people used to openly discuss it in my experience. now its all hush hush and taboo I think

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ABitSensible · 19/03/2016 16:03

It angers me that its seen as shameful to claim tax credits, but not for employers to pay shit wages.

pinkflowerbluesky · 19/03/2016 16:03

Erm, exactly, Helena!

Openup41 · 19/03/2016 16:07

No shame in it at all.

I will add that it is a shame tax credits did not exist in the early 90's when my mother (amongst many others) struggled raising children on a low wage. We would have been far more comfortable Sad

AutumnLeavesArePretty · 19/03/2016 16:18

ABitSensible, employers are usually blamed but unless paying under minimum wage then they are doing nothing wrong. Some jobs simply don't warrant a high salary as there's no skill involved.

Employers pay the wage, it's upto the person to ensure that the pay and number of hours covers their living expenses. So a single person can share a house and live cheaply whereas a family wanting their own home, adults not wanting to work full time, live in expensive areas or have children likewise need to ensure they can cover the costs. People's living expenses vary on the choices they make, that's not the fault of the employer or state.

imwithspud · 19/03/2016 16:36

My dp recently started a new job, it's not particularly high skilled or high risk, however it pays considerably more than his previously job, which was min wage and carried significantly more risk in terms of the chances of him getting injured on the job.

Some companies pay minimum wage simply because that's the lowest they can get away with and because they know the government will pick up the short fall via tax credits. They may not be doing anything wrong from a legal standpoint but morally it's questionable when it's been well documented how low wages are in the uk compared to the cost of living and said company can afford to pay more but chooses not to.

pinkflowerbluesky · 19/03/2016 16:38

A lot of posters have criticised the minimum wage being raised, though, because it is a Tory policy causing businesses to close, allegedly.

Alfieisnoisy · 19/03/2016 16:47

No shame in it at all. If we are gong to have a work force as we get older then children need to be born and not just to those who are earning above £35k.

That might piss some people off but hey....most countries pay their workers a living wage and they live in that without needing top ups from the state. I have relatives in Europe earning salaries that allow them to bring up families and have a roof over their heads. They get no extras like tax credits because their wages cover their living costs....and I am talking about fairly normal jobs too.

smallspikyleaves · 19/03/2016 19:22

It angers me that its seen as shameful to claim tax credits, but not for employers to pay shit wages

YES to this

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FinallyFreeFromItAll · 19/03/2016 20:30

People tell their work places that they refuse to do more hours because it affects their tax credits, people actually say that outright? Really?

In my DM previous job (approx 4-6yrs ago), two of her 6-7 employees openly said they could not afford to do any more than 16hrs. On a couple of occasions they did the extra hours (to be good helpful employees when mom was desperate) but begged not to be paid for them.

For both of those employees it was far more complicated than just tax credits. It was when taking the whole lot of benefits into account. Including things like, the free school meals they got for their older primary age children. The one of these employees had been a full time retail manager prior to working for my mom but said that his family ended up just as well off with him working 16hrs in a lower job and all the benefits that topped it up. He also got less stress and more family time for him.

latebreakfast · 19/03/2016 20:47

they are now seen as a benefit (state support) rather than what was originally touted as a refund of tax.

Tax credits have never been a "refund of tax". The name is incredibly misleading, and probably intentionally so.

AndNowItsSeven · 19/03/2016 20:52

Yes they were, not the exact money you pay in tax but that was the intention. And yes I know unemployed parents also received them under the same name so people weren't demonised like they are now.
m.youtube.com/watch?v=8dllkfKg7B4

AndNowItsSeven · 19/03/2016 20:59

" if you've earned it make sure you claim it.

phlebasconsidered · 19/03/2016 20:59

I get them. I was fretting about them last year and praying I still got them. They literally mean I can pay my child care and petrol for work.

I'm a teacher working 4 days a week. Pretty shit I should still need them! People need to realise that it's not just the sub minimum wage earners, it's every working person up to and beyond the limit.

I need to be at work at 7:30, so my childcare is from 6:30 till 8:50 them 3:15 till 6. It's a huge expense when my own non capital weighted wage is low. Without the tax credits I would be borrowing from my mum to get petrol to work. I'm not ashamed but I cross, and utterly fearful they will be taken away.

smallspikyleaves · 19/03/2016 21:07

this is how we are phlebas

it sucks that as a teacher you still need them !!! DH 's main job is a management role as well he is not on nmw by any means, he is well above it. yet we would be fucked without ours

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Orda1 · 19/03/2016 21:10

Not read first page.

I'm surprised you see tax credits as something most people get, I have always viewed them as something only the poorest workers got.

FinallyFreeFromItAll · 19/03/2016 21:17

Tax credits have never been a "refund of tax". The name is incredibly misleading, and probably intentionally so.

They have never been a refund of tax but they were named as they were to make it socially acceptable to claim them by making it seem more about getting some of the tax you pay back rather than claiming a welfare benefit.

I studied it in sixth form. Along with the idea behind the weekly payments for 16-19 to attend sixth form.

FinallyFreeFromItAll · 19/03/2016 21:19

I have always viewed them as something only the poorest workers got.

You used to be able to earn up to almost 60,000 and get some, obviously dependant on number of children and childcare costs.

Dovinia · 19/03/2016 21:22

Initially almost all families were eligible Orda1, about 90%. I seem to remember median family income is about £28k now - a working family with 3 children who pay for childcare could be earning £50k and still get tax credits. So certainly not just the poorest.

FinallyFreeFromItAll · 19/03/2016 21:23

In fact you can still get them with a household income of upto 65,000.

Scroll down to 3 children with maximum childcare costs
www.gov.uk/government/publications/tax-credits-entitlement-tables-working-at-least-16-hours-and-paying-childcare/tax-credits-entitlement-tables-working-at-least-16-hours-and-paying-childcare

I certainly wouldn't call those the the poorest workers

Orda1 · 19/03/2016 21:23

Sorry, I misunderstood, I don't know anything about child related tax credits (no children)!

Makes sense now, my apologies.

smallspikyleaves · 19/03/2016 21:27

finally that's very interesting

so what was the thinking behind them wanting to make it socially acceptable to claim them, when the rhetoric now is the complete opposite? why would the government (obvs was a different one!) WANT to entice people to take money from the state?

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Dovinia · 19/03/2016 21:33

The Labour govt has a very different ideological stance in terms of the welfare state and supporting families, putting lots of money into early years etc.

KillBillHill · 19/03/2016 21:40

I think it was shameful a long time ago. I remember starting a new job and the whole company knowing I claimed them and being asked why I needed benefits when I was working. I felt ashamed for years until my daughter started school and I met other school mums and realised that I wasn't the only one needing them.

KillBillHill · 19/03/2016 21:40

Sorry that was in 2008

smallspikyleaves · 19/03/2016 21:48

killbill that's disgusting it was none of their bloody business! nosey fuckers Angry

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