To be quite shocked at how much benefits bil receives!

[Santandery]

Before I begin, this isn't a benefits bashing post. I have been on benefits during hard times and am extremely grateful that we have this in this country. I am just very surprised at how the system is very messed up. It seems fair and unfair too if that makes sense.

It's after discussing this with family that I came to realise. I am quite shocked at the amount that BIL is getting. He has 4 kids, earns around 21k and receives around £13k in benefits. £10k from tax credits and around £3k child benefit. So his total income is £34k! He has no mortgage as he bought a house through buy to let. I know all this because he told us. He also refuses to get a higher paid job as he says he'll receive less tax credits so the extra commute responsibility isn't worth it to him. The increase in income woukd be quite small anyway.

I just think that's a bit too much to be honest. I mean there will be ppl in smaller homes with mortgages with similar size family who earn more in wages but because of tax take home less money.

I think this is really unfair.

Oh dear! I put an X at end of message! A true MN sin!

He has 4 children, that's why it is more. The tax credits office don't care that he has no mortgage as it's calculated on income and number of children and not outgoings. I have no mortgage so have more disposable income than others who earn the same as me, the difference is that they have always traded up in houses and now have executive detached homes whereas I have the same little house that I've had for years. Horses for courses and all that.

Actually, I'm really pleased to hear that he gets enough to manage with 4 children. Of course there are other people who should also get more, but it's nice to hear that at least some people get enough.

Right to buy is a the real problem - a policy which should only ever have been allowed if councils then had to use the money to buy or build more social housing unless they had nobody else on their waiting list.

The implementation of the right to buy scheme has a lot to answer for. Those who were able to buy in the early years have obviously benefited, and arguably it did reduce the public/ private housing divide. However, the refusal of governments to allow local authorities to use right to buy income to build further social housing means that the pinch is felt by people trying to get housing now - buying is unaffordable for most, social housing is often unobtainable, and the private rentayl system is increasingly at the mercy of unscrupulous landlords.

I think the point of tax credits is to encourage people in lower-paid work to continue to work, rather than giving it up and becoming entirely dependent on benefits when e.g. childcare/ commuting costs would otherwise make work less affordable than benefits. And child benefit is for the children, presumably that’s going to the children’s mother as she is the non-earner.

Cross posted with lots of people re right to buy !

Yep I also know someone who was SAHM to four kids and her DH earns just above MW and 'doesn't want to stress himself' getting a higher paid job. The also get most of the rent paid. You also need to factor in benefits are tax free, so that 10k he gets any other person would have to earn probably 12k.

It' a fucking joke but woe betide you call into question the amounts people are getting on MN

You still need a mortgage for RTB properties.
There is a cap on the discount.
So unless he was able to buy it outright he would still have had a mortgage.
How long ago did he buy it?

I have just thought, is it because I have changed circumstances quite dramatically? Until 2 months ago DP was working part time. I was SAHM. I got an opportunity for an amazing career with great progression opportunities. We were receiving quite a lot benefit wise. 211 pw child and work tax creds. So is it because my financial situation changed dramatically towards end of financial year?

For those knocking Corbyn (and why not, he seems to get the blame for everything nowadays!), it's this that Corbyn wants to reform, the drastic inequalities that see some living (arguably) very comfortably whilst others are having to rely on foodbanks.

Hope that helps.

I am always really surprised that someone go to the trouble of joining a parenting forum just to disclose the financial circumstances of a close family member to strangers.

Knittedfairiesyes she is hoping to appeal. She has family members / friends who know more about that sort of thing who are supporting her with it.

I find it crazy that they are cutting benefits from disabled ppl who really need it but continue to give to families.

TheFirstMrsDV I have name changed for this post for obvious reasons, detective!

Ok he doesn’t have a buy to let property on top of his home. It’s right to buy. I was confused as to how come he could afford this. Was assuming money from his in laws or some such.

I guess at least they are not claiming house benefit May be he's not able to get a higher paid job? May be the mum will work once the children are older.

As pps have said he's not doing anything wrong, the fault really is with the system

And the system now means any families that have children born after April 17 will only get tax credits for two children. Yet the situation remains that wages are suppressed which will naturally effect the lowest paid the most.

Single mum here. Two children. Receiving child tax credits JSA and child benefit.

£5640 tax credits
£3922 JSA (just started as youngest turned 5. will be on for at least 4 months because they’ve very generously put a restriction on what I need to accept based on my previous employment (£50k min (but pro rated) and school hours. So highly unlikely!)
£1600 child benefit

They don’t take in to account the high child maintenance i receive from my ex.

So to be honest, as a newcomer to the system. I find the system very generous indeed.

I don’t think there’s a fault with the system

The man is supporting 6 people on c. £30k a year. Not exactly flush

I think it's more shocking that people can be in work and still not afford to be able to live on minimum or lower wage. I really believe we need to focus more on a living wage being available for all jobs.

Bombadier - that’s all well and good but all corbyn has (and has ever had) is good intentions. He doesn’t offer any actual practical solutions other than stoking the usual populist nonsense about ‘the rich’

In a way I don’t see a problem with those who play the tax credit system to maximum advantage. It’s no different to me making extra pension contributions so I take my pay back to 50k to avoid a child benefit charge.

The problem is a bloated over complex system for both tax and welfare. Universal credit for all its faults was an attempt to rationalise that system

TheFirstMrsDV I have name changed for this post for obvious reasons, detective!

Ok
Just change it to
'I am always surprised when people go to the trouble of changing their names on mn just to....etc'

I don't know what your 'obvious' reasons are.
If your BIL saw that post he would know it was you regardless of what nn you are using

Oops.

NC fail there OP.

I fundamentally agree that benefits should be capped at two children. Being out of work should not pay more than being in work...

I find it crazy that they are cutting benefits from disabled ppl who really need it but continue to give to families
They are cutting it from families
Disabled people have families
Its not a competition
If they stopped giving benefits to every family in the land they wouldn't start giving disabled people more money.

Viviennemary

Someone on £14k will taxed very little

Only on the £3k over the personal allowance figure of circa £11k. In the OP’s scenario he doesn’ received enough benefits to exceed the personal allowance in any event.

I fundamentally agree that benefits should be capped at two children. Being out of work should not pay more than being in work

This exactly.