Anyone else worrying about what they're going to do when their tax credits stop?

[memoo]

Eventually anyone earning over 25k a year won't be entitled to any tax credits at all. Our household income totals just over this and we get tax credits on top which we really depend on. Its going to be really hard to be without it.

Well literally everyone i know, couples, single people, well off and far from it have had their tax credits stopped last month and made to reapply.
Maybe it's a practice run for when they are pulled completely ?
We've managed, just but it's not comfortable at all and I won't be going to Uni if they don't sort it out asap despite beating off 1500 people for a place :(

Yes I'm worried, we've changed our plans, I'm going back to work asap etc etc etc I think the country is going to be for a long deep recession with awful consequences.

I thought the cut off was 50k?

Thats crap mama, can you apply for a grant/student loan to see you through uni? Seems a huge shame not to go, espcially when you've beat off so much competition!

Where have you got 25K from?

Cut off is now £40K

Our tax credits are just used for DS's nursery, if oush comes to shove we can take him out, we don't rely on them to pay for anythinh else.

www.telegraph.co.uk/finance/personalfinance/how-budget-affect-me/7846985/Budget-2010-middle-income-earners-lose-child-tax-credits.html

Thanks for the link, just reading

It just says it will be reduced from 2012 for those earning more then 30k, stopped for those above 50k.

I'm applying for everything but it's amazing how many things require the bloody tax credits award as proof.
I don't know whether to chance it and just start the course and nursery, then if i can't pay i can't and we;ll have to pull out.
I called them 2 weeks ago as we've not had a penny since 13th August and they told me it's taking on average three weeks to process.
So hopefully in a week or so i shall have 6 weeks payment through but am currently panicking a lot.

The university has an access to learning fund and will give you/lend you money if you ask them and fill the form in mamatomany.

I think it says that is will be stopped from 2012 for families earning over 30k and will be reduced to just over £500 for those earning over 25k, we currently get £80 a week!

pg 71 has a table showing the impact of the changes at various income levels.

Thanks for that Squirrels

I'm getting confused now as according the figures DH and I should have only receive £545 this financial year but we've had much more

just had a look at it in detail, and it excludes childcare costs - so actually not overly helpful. Is also based on just 1 child, so if you have more, or a baby, you will get more.

£80 a week is a huge amount Memoo, are you sure it's right ?

My tax credits will go down next year as i'm still getting more than normal after having Ds but I know what i'll do when it drops.. another shift at work!

Its so annoying that they make it too complicated to understand. Why can't they just say what the changes will be.

We recieve the basic amount, £545 and between us we earn just over £30k.

In Nov we will have DC2 so will get the baby element till April next year, when they will that axe that.

And then the following April we will lose some, if not all, of the tax credits we recieve. Just wish they would tell us so we could try and plan.

We have 3DC so maybe thats why its so much more and are currently getting the baby element until later this month when DD turns 1.

I agree that they should make it easier to understand! The way it is at the moment we're basically left just guessing which makes it really hard to plan for the future!

Do you think we will find out more in the October spending review?

Labour created a system which made virtually the whole country dependent upon benefits. That is like having an insurance policy where you know you will claim, it is crazy.

With an average income in the UK of £25,000 you cannot have people on more than double this dependent upon the state. State help should be limited and moderate, not a way of life.

I would agree that the £25k limit would be fine if it wasn't for the fact that tax credit were included as income when calculating how much people could borrow, everything from mortgages to car loans.
Suddenly remove that income and the whole lot is going to come down like a pack of cards.

Tax credits have allowed companies to get away with 2% wage increases for the past 10 years.

Since this year hardly anyone is getting an increase at all yet inflation is rising there are going to be some serious problems around the corner.

How can the government afford to pay all these tax credits?

It depends on the number of children you have and whether you pay childcare. If you currently receive more than 545 pounds a year, without having a child under 1, you should continue to receive the same amount or more.