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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

The budget and Universal Credit.

45 replies

borderline11 · 30/10/2018 19:51

Aibu to think £630 a year isn’t going to do much. People will still live in poverty. It’s a disgrace, it seems the tories are intent on spreading as much misery as possible.....apart from the rich of course.

OP posts:
stayingaliveisawayoflife · 31/10/2018 05:44

I will benefit from the tax changes. I will be able to keep giving the £300 a month to my sister to top up her uc so she can pay bills. It's all a joke but not funny. I know she is fortunate I am in a secure job but it means that our plans to move to a slightly bigger home, have a pet etc are on hold until the situation changes. She can't work as she has so many physical issues but has been refused benefit when the changeover happened.

sobeyondthehills · 31/10/2018 05:50

They need to sort out the shit storm they have created before trying to implement any change, I include PIP and ESA assessments in that as well

FridayThirteenth · 31/10/2018 06:06

@ivykaty44 over £125k you don't have any personal allowance (it gradually tapers down over £100k I think)

Clearly we shouldn't be focusing our concern for anyone on that much money though!

ivykaty44 · 31/10/2018 06:22

Unless you pop it in a pension fund, thus falsely reducing your income to below £100k

Fairylea · 31/10/2018 06:36

Many families with disabled children are going to be worse off under Universal credit- details here contact.org.uk/news-and-blogs/universal-credit-changes-announced-in-yesterdays-budget/
We are hoping we will be protected by transitional protection (?!) but if that is not the case we will be £80 worse off a month - we have a severely disabled ds who attends complex needs school. We have no way of making the shortfall up, short of a miracle.

Firesuit · 31/10/2018 07:46

Unless you pop it in a pension fund, thus falsely reducing your income to below £100k

YABU to say "falsely" as the government explicitly gives people tax relief on pension contributions so they will put money in their pensions, there absolutely nothing wrong with anyone doing that.

Having said that, very high earners are also restricted in what they are allowed to put into a pension, compared to everyone else. I've had a quick look at the thresholds, people earning between 100K and 140K can probably do as you say, but above that I think the two restrictions interact to ensure no-one gets a full personal allowance.

ivykaty44 · 31/10/2018 08:21

Firesuit, of course there is nothing wrong with tax loopholes & many large companies use loop holes to avoid and lower tax, so why shouldn’t high earners use them

MissMalice · 31/10/2018 08:23

I will be able to keep giving the £300 a month to my sister to top up her uc so she can pay bills

Shouldn’t she be declaring that to UC?

MyDcAreMarvel · 31/10/2018 08:59

Shouldn’t she be declaring that to UC?
Really malice that’s what stood out as concerning on this thread!

Neshoma · 31/10/2018 09:03

The trouble with Budgets is there are always winners and losers.

ivykaty44 · 31/10/2018 09:13

Be Shona but when the divide between rich & poor increases & the gap is to big it goes beyond winners and losers.

MyDcAreMarvel · 31/10/2018 10:19

The government have been very misleading with the extra £1000/£630 for the most part only new claimants with benefit. If you transfer from tax credits it’s extremely unlikely you will benefit.
Fir example if you received £1000 a month of child tax credit but were only due £900 a month on UC. Because of the changes to the work allowance you would now be due £952 a month on UC.
Because of TP you would get £1000 same as you got on tax credits so the extra £52 is meaningless.

MyDcAreMarvel · 31/10/2018 10:19

*will benefit

Rhayader · 31/10/2018 17:40

ivykaty44

Once you earn 100k you lose your tax free alowence. It’s £1 for every £2 over 100k. Is by the time you earn 100 + (personal allowance * 2) you dont get a personal allowance. It’s why everyone earning over 100k has to fill out a self assessment tax return, so that they can pay back the tax from the tax free allowance.

It does mean that if you would otherwise get 30 hours childcare (also 100k cut off) and still have a student loan etc that 100-120 or so is more than 100% income tax and national insurance. This is why people put this money into their pension instead so that hey can still claim 30 hours and don’t have to pay any income tax at the artificially high rate due to the complex rules.

It’s generaly not worth actually earning the money (and therefore paying tax) until you are on about 150k! So it can create a weird incentive to over pay into pensions.

Rhayader · 31/10/2018 17:46

This graph shows the change in marginal tax rate. It takes into account child benefit but not 30 hours or student loan.

The complex thing about student loan is that it is 9% of your PRE TAX salary but it comes out AFTER TAX. This means that the % that you pay can be enourmous at the over 100k level so it ends up distorting things weirdly. Tax is waaaay to complex in this country!!

The budget and Universal Credit.
Xenia · 07/11/2018 17:37

We get asbolutely no single person allowance at all. people don't realise never in British history have we upper earners borne a higher tax burden. Everyone instead thinks we evade and avoid tax and pay none I presume. It's very annoying. Obviously we are lucky to have a job and have more than half our income taken in tax before it reaches us but we do not get a single person allowance. We obviously get no child benefit either and that kind of thing others take for granted. In my parents' day at lerast they got tax relief on mortgage interest and that kind of thing but it's all just disappeared whilst tax has gone up and up and up and fewer and fewer people pay any tax at all.

Rhay, those are useful posts. I would certainly encourage women to get their earnings veyr much higher so that their effective rate goes back down closer to 47% tax/NI rather than ease off and earn less although if the state is not careful it will have bitten the hand that feeds is so much higher earners will down tools, the less well off will have less money but may in fact be happier as they will see fewer people around them who earn a lot.

The benefit changes have been veyr popular with most Labour and Tory voters actually - that is what Corbyn is up against if he wants to win oower in 2022 (thankfully)

Imustbemad00 · 08/11/2018 23:56

Does anybody know when thenchange will come in. I’m currently on UC and have £189 rough figure work allowance before my UCreduces. Will this change for me? I knownots pittance but will be such a help

Imustbemad00 · 10/11/2018 19:11

Anyone?

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