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?

unless your BIL was already receiving Tax Credits he ill not be able to apply for them any longer and would have to claim for U.C.
Part of the conditions for claiming U.C is seeking more employment and for not doing so sanctions can be made

HB can't be a new claim either unless your receiving a pension and so is your spouse/partner

You were asked how many hours he worked. You said you don’t know and asked why it’s relevant.

So how many hours does he work then?

I get what you mean OP but it is short term gain and long term pain. Once the kids grow up their income will drop like a stone.

Their friends and family will be at the point of retiring, holidays, reducing hours while they will be stepping up to f/t to make ends meet.
Maybe the BIL is under the illusion he will step straight into a higher paid job even though he is stepping back now. deluded

I would save my ire for employers paying shit wages that mean the Govt need top up. Nobody working F/T should need to claim benefits if the employer turns a profit. supermarkets/DIY retailers/clothing shops etc
The Govt should be shaking the money tree for social housing so that min wage jobs cover housing costs too

You can only get tax credits if he was already on them. Both my dds have to go through UC and both have to be looking for jobs.

A four day week doesn't always mean not full time.

I condensed my full time Monday to Friday job to four days, meaning I now work 7:30am to 6:30pm, but get an extra day without work a week.

Yes I only work four days but it is full time work.

I work 3 nights 1 week and 4 the next all fulltime hours.

"And for those people who ask - no in can’t claim child benefit - my husband earns too much because he worked hard, made the most of his opportunities and has a high paid job."

You do know that people have unequal access to opportunities, and that many jobs that are very hard work have very poor pay? You do know that society needs the people who do the very low paid jobs, like cleaning, general maintenance, security, shelf stacking, refuse collection, etc?

Child tax credits are to help raise a child. My partner works and I'm a stay at home parent/carer to toe children with sen. We get some child tax credits. I don't know much about working tax credits.

Working only 4 hours a week if he can work more is bizarre though!

He works four days, not four hours. OP admitted a few pages in that she made a typo.

You do realise there is a pandemic and people are been laid off left right and centre.

@vodkaredbullgirl

You do realise there is a pandemic and people are been laid off left right and centre.

The sheer numbers of people who have lost their jobs, had their hours reduced etc is scary and is set to get worse. I have no idea how this scale of people claiming benefits is going to be affordable.

As pp said, it's mainly to support industries, and those who work in them, with low wages. Yes, some people may game the system for their own gain or for different work-life balance, but largely it's about topping up low wages to a livable standard and some attempt at dealing with poverty while employers don't have to.

Many of the people in those industries work hard and were the key workers that enabled others to work from home or be able to return to work out of the home quickly and safely by doing things like delivering things or maintaining the water and safety in shuttered buildings. It's a bit off to benefit from someone's labour and then dismiss the worker's efforts and capabilities.

4-day shifts (4-on with 3-4 off) aren't uncommon in some industries. It's more the hours in that matters for Tax Credits and even more for Universal Credit (though I think it's 'earn equivalent to 35 hours minimum wage' which obviously doesn't mean work 35 hours. Without kids, on working tax credits the minimum is 30 hours average). What we define as 'full time' varies, but whichever system that is ensuring people have enough to live on has to take into account some industries have lower full-time hours and greater recovery/off time, often as part compensation for working difficult jobs during unsocial hours - still need to eat and keep a roof over their heads even if industry standards also include pisspoor wages.

My dd had 2 jobs, which she has now lost. As the place the company were rent, the owners didnt renew their contract. Luckly she has some savings but not going to last forever.

JellyCatsPyjamas.Agree 100%.Many many people work in very hard tiring and physically demanding jobs .And guess what BugsAreInTheBrook they get paid crap wages for crap jobs! Even going to Uni is a not a dead cert of "winning the salary jackpot " these days .Jobs are few and far between, and even harder to obtain now we are in a Covid Recession .I really wish that these well paid people could accept they "got lucky" and resent paying a small amount of their wages to those less fortunate than themselves .Its downright greedy ,unchristian and nasty IMO ! Time for a headshake BugsInTheBrook!

@Bugsareinthebrook your anger is misplaced. Read my pp

Tax credits do nothing to lift people out of poverty. It’s like a sticking plaster. Higher wages and more affordable housing are the real answers.

It’s appalling that people who are working at capacity need topping up through tax credits. And as for those who are gaming the system, and choosing not to work at capacity so they get topped up- it’s a really bad bet long term. Read my pp about my friend, who‘s openly gamed the system for years. She thought she’d struck gold by working 3 days and getting topped up to almost what she’d have earned on 5 days. But she’s now realising she’d have been far better earning that extra money rather than getting it as a top up. If she’d earned it, she’d have had decent payments into her occupational pension (and frankly having a decent pension is about the best thing any earner can do with their wages- look on it as money given free by your employer.) Her dc is approaching the time when they’ll leave home... my friend is now realising at 50 that she’ll need to step up to full time but she’s been left behind career wise.

It really isn’t the great bet that you seem to think it is.

Small mount of their wages! Lol

You should keep your nose out of other peoples life choices. We have a pandemic going on maybe it's made him rethink life.

So sick of reading about benefit bashers on here, you can't do right from doing wrong in this world.
Concentrate on your own personal life, don't waste it thinking and judging others it's very unfair. He works 4 days fgs

Ok I will carry in working and paying and you all can reap the rewards . Good job someone pays tax

ffs give it a fucking rest.

I pay tax too, was paying tax and still got tax credits.

I think your husband made the most of his privilege, which gave him his opportunities. You missed that bit out.

@Bugsareinthebrook

Ok I will carry in working and paying and you all can reap the rewards . Good job someone pays tax

wow you are going too far op, really ignorant.

Privilege lol no fucking idea absolutely none

Like you have no idea about your bil.

I pay tax, I’ve worked for over 30 years now, paid higher level tax for much of my career, my DH has also always worked. You’re not subsiding anyone - unless you have no need for health services, education services, national defence, local police and fire services, local community services etc etc. The social security system actually takes a very small part of your tax money. Besides which there are very few people who are net contributors to the public purse - we tend to take more than we give.

The reality is somewhere someone determined your BIL is entitled to payment from the public purse, you don’t get to second guess that. And you personally aren’t subsidising the whole welfare system.

Privilege lol no fucking idea absolutely none

If your DH is earning at a level to disqualify you from child benefit, he’s earning much more than most of the U.K. population. You and he are privileged by any definition.