What are tax credits for

[Bugsareinthebrook]

My BIL has just changed his job to something with less Responsibility (so less pay) and dropped to 4 hours a week purely for more family time. This allows him to claim tax credits to ‘top up his money’. His partner is a sahm so it’s not for childcare. I can’t but help feel that is not what tax credits are for and that basically as people who work hard and always have our tax is going to him while we work our guts out. .
I’m happy to be flames but I don’t think it’s fair.
What are working and child tax credits for?

Working tax is to literally top up wages to a minimum living standard

It helps pay for rent/mortgage, any bills and food shopping

Child tax credits does the same but it also helps towards care for the children and the things they need

Child Tax Credit is to help with the costs of raising a child. It is means tested and capped but there is no minimum work requirement.

He won't be getting Working Tax Credits as he and his partner would need to be working a minimum of 24hrs between them with one of them working at least 16hrs, if he had a disability then the minimum requirement would be 16hrs, so he will only be getting Child Tax Credit. Childcare is part of Working Tax Credit so even if he has childcare costs he won't be getting anything towards them.

Did you miss a digit? Is he actually working 24 hours per week? To get Tax Credits, a couple has to be working 24 hours between them, with one of them working at least 16 hours. If one of them is exempt from working due to being a carer, then it would be a 16 hours requirement.

Working tax credits.

I agree. It grates in me that people can claim stuff for a ‘life style’ choice. I have no issues whatsoever helping people who need it helping those who can’t work etc ... but giving tax payers money to those who CAN work but CHOOSE not to really makes me mad.
It’s not right. BIL should be ashamed of taking tax payers money to fund his lifestyle.

Based on the information he will only be getting Child Tax Credit. In addition they will be getting Child Benefit and possibly Housing Benefit and/or Council Tax Benefit depending on their circumstances.

He won't be getting anything to top-up his wages as he doesn't qualify for Working Tax Credit. He could claim Universal Credit but this would cancel/replace the Tax Credits and they would expect him to up his hours or look for a job with more hours. Universal Credit would probably be more money than he is currently getting.

Basically they're living on less money than they could be if he switched to UC and upped his hours so are hardly coining it in.

Based on two children, working four hours a week at minimum wage he would be entitled to £119 p/wk Child Tax Credit and £35 p/wk Child Benefit.

On Universal Credit he would get £256 p/we plus the £35 Child Benefit but he would have to increase his hours as a condition of claiming unless he met criteria for not doing so.

Think the point I am making is that benefits to increase earnings to a livable amount shouldn’t be about lifestyle choice.
He has the ability to work and earn a wage where he doesn’t need to claim but he chooses not too.
We both work and have children but don’t claim anything . I don’t expect help. So I feel like I am funding him when I don’t have to

He can't have claimed tax credits unless he was already recieving them, as you haven't been allowed to make a new claim for tax credits for some time.

They'll likely get free school meals, too.

Sorry there is a typo - 4 days a weeek

How would you propose they police who is doing it because they have no choice and who is doing it as a ‘lifestyle choice’? Genuinely? How would you prove that?

That’s not what I am saying - I know it’s lifestyle choice and it upsets me and feels unfair .

So he works four days? How many hours is that?

I don’t know. But why is that relevant . Why should I pay for him to work less

And as a "lifestyle choice" .... Limited income, limited choices and opportunities, you could lose it all based on the political ideology of whichever government is in power, and then when the children grow up a large percentage of that income stops overnight. It's hardly the land of milk and honey is it?

4 days a week, not 4 hours a week is a big difference

OP, the Child Tax Credit system operates to try to minimise child poverty. It isn't your DNs fault if their father is choosing to work fewer hours. Does that make you feel better about it?

What pisses me off about the system is that it is primarily designed to allow big business to maximise Fat Cat salaries for CEOs whilst paying worker bees less than anyone can reasonably live on. Tax payers are subsidising huge profit making companies by topping up pitiful wages with Tax Credits.

If you want to be angry about something that might be healthier than focusing on a family member OP.

Nope - don’t think they realise that though.

I don’t know. But why is that relevant . Why should I pay for him to work less

Because hours and income affect entitlement, particularly with Tax Credits which is means tested so reduces with income. It also shows he is paying into the system whereas you make out that he isn't.

You come across as very bitter about it all, if you thinks it's such a great life then quit your job and go on benefits.

Why should I pay for him to work less

You don't get a choice about what your taxes are spent on, you get to have your say at election time and after that it's up to the government. We have a welfare system which, while far from perfect, allows people to make the choices they deem necessary for their own particular set of circumstances.

My husband works 4 days a week and in his job that is 48 hours.
So yes it is relevant because your bil could have been working an unsustainable number of hours for all we know.

To add when my husbands shift pattern was 5 days a week it came to 40 hours rather than 48 over 4 days so yes it is absolutely relevant.

DH used to work five days a week plus travel, he now does only occasional travel (and none right now due to Covid) and dropped to four days however he does the same number of hours as he was doing when he was working five days as he now does condensed days. That extra day off each week allows him more time at home and for us to have more family time.

So do you claim benefits so he can work less

Other peoples benefit claims, including that of your BIL, are none if your business OP.

Surely this is a change of circumstances meaning a move to Universal Credit? UC has replaced TCs so if he DOES make a claim he will need to either work or look for work for 35 hours (unless he is exempt).