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How can I find out what tax credits we will receive next year? Ant advice welcomed!

98 replies

ssd · 14/09/2015 09:17

I know we will receive less, but I need to find out how much less. Is there an online calculator somewhere that will show me what we'll get as from when the changes to the threshold comes in?

Also ds turns 18 in May and we'll stop getting his child benefit from round about then, I'm not sure exactly when. So when this stops, and we only claim for ds2, do we get £20 a week or £13, like we are getting for ds2 just now?

If anyone could help it would be great, I'd scoured the internet and not found any answers and dont want to phone tax credits as I find them hopeless unhelpful.

OP posts:
ssd · 22/09/2015 23:02

yes, I'm grateful for that.

OP posts:
Babyroobs · 23/09/2015 10:52

My low earning lone parent cousin faces a triple whammy nest year. Eldest child is going to Uni so she will lose tax credits and child benefit for that child ( which she expected). She then also loses tax credits for her younger child with the cuts and her dd will not get the maintainence grant (previously around £3k+a year) when she goes to Uni. As she has a mortgage she will not get any HB. She is lucky ( if you can call it that) in that her elderly parents will continue to help her out financially as they have done for many years and will no doubt help their grandaughter at Uni.

Iamnotloobrushphobic · 23/09/2015 11:07

I'm not sure how the govt expect people on relatively low incomes to cope with a sudden drop in income of up to £60 per week. It seems like the average drop from this thread is going to be around £50 per week which is a huge sum of money. It's good that some people will have some of the shortfall made up through an increase in housing benefit and council tax benefit but many people will have nothing to make up the shortfall due to having mortgages etc.
I am getting really concerned about childhood poverty over the next few years as I think a lot of people haven't really understood what the cuts will mean to them and think they won't be affected by much if anything at all. Come next July when tax credits are renewed a lot of families are going to be really struggling.
Some families will be able to get additional hours of work to make up some of the shortfall but many families won't and those families like mine where there is a severely disabled child don't always have the option of working more hours even if they are available.

Babyroobs · 23/09/2015 11:15

A lot of the people I know claiming tax credits will be able to make up the loss. Most lone parents I know get a decent amount of child maintainence every month and their kids won't go hungry. Most of my work colleauges are loking to increase their hours and we are lucky there is almost always plenty of overtime going ( care work). My cousin who is set to lose a lot from next April might hopefully be able to increase her hours and go full time as her youngest child will be 12. I guess it depends if she can get the extra hours. She gets no CM from ex.

ssd · 23/09/2015 20:21

we've got no parents left to help us out, or I know my mum would have, my kids have no grandparents...but thats another thread....it just feels like us against the world sometimes.

agree the cuts are too severe, they arent being phased in, they are being slammed in and its wrong.

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KatharineClifton · 24/09/2015 00:00

That is odd Babyroobs as 64% of lone parents receive no child maintenance. Perhaps the govt think otherwise.

Babyroobs · 24/09/2015 12:12

Katharine- that may be the case. I said the majority of lone parents I know receive good amounts of maintainence. obviosly there are many who don't. the government could be doing a lot more to chase those nrp's who get away with paying little or nothing. having said that my cousin has never had any CM for the past 17 years from her ex. She knows where he lives yet she won't claim from him. I have no idea why, there was no dv or anything as I Know. Maybe when her tax credits are severely cut she will have to pursue him for CM to survive.

MisForMumNotMaid · 25/09/2015 19:04

Tiny tiny bit of progress in my one woman tax credit change protest....i have a postcard from the house of commons.

Surely though they could have acknowledged by email as it was an email i sent and saved the price of a stamp and fancy printed card!

If anyone else finds themselves with a spare five minutes please also email/ write too, facebook, tweet your MP. Its the only way things will happen if we actually make a bit of noise.

Viviennemary · 25/09/2015 20:38

I don't think there will be any real hardship with these cuts in tax credits. They should never have been introduced in the first place. It's only encouraged lower wages and increases in rent prices and also in the property market.

VulcanWoman · 25/09/2015 21:24

Why haven't the Government put a calculator on their website so people can know for sure what will happen, is this too much to ask.

MisForMumNotMaid · 26/09/2015 07:04

viviennemary there will be mass hardship with these cuts. People literally unable to heat their homes.

Iamnotloobrushphobic · 26/09/2015 07:04

Really vivienne? You don't think that a working family who are already on a low income will struggle if they suddenly lose £50 or £60 of their weekly income?
Low wages were a problem way before tax credits were introduced. Prior to the minimum wage being introduced many low earners were on less than £3 per hour so I don't really think that tax credits can be blamed for low wages. Tax credits just meant that low earners could have a decentish standard of living for their family.

Alfieisnoisy · 26/09/2015 07:49

Babyroobs, your posts were so simplistic I almost don't know where to begin.

If it were THAT easy to get CM out of the men who don't contribute it would be great.

Saying that "she'll have to go after him for CM if she wants to survive" is awful, can you really not see the reality of that? It can take months or years to get some kind of agreement, some don't get the money even then as the absent parent vanishes/loses his job/goes self employed.

What happens to the child during that time?
It's simplistic to say "oh well she'll have to pursue him for CM".

Viviennemary · 26/09/2015 11:20

People will just have to learn to live on less. If this sounds harsh then sorry. Folk have been cushioned by this welfare state and have got used to the idea that they can live quite nicely doing a few hours a week and topping up the rest with tax credits. Many people are fed up of working in stressful jobs and doing long commutes and being left with not much more money or even less than those on benefits. Why has the Tory Government got in. Because of this. IMHO.

KatharineClifton · 26/09/2015 13:35

Bravo Viviennemary, nice bit of trolling!

ssd · 26/09/2015 14:07

viviennemary, can you explain what you mean by "those on benefits?"

do you mean someone like me, who works in a stressful job and commutes to it and still receives tax credits as the wages are low? and will lose £50 a week due to the cuts?

or do you mean someone you seen on channel 4, who has never worked and lives completely on benefits? and wont have their benefits cut as they don't work?

do you realise its the people who work who are affected by the cuts, not those who dont?

OP posts:
Viviennemary · 26/09/2015 19:22

I mean people should think how much would I have to earn without help from tax credits and other benefits such as housing benefit. And then think of people who earn less than that, have mortgages to pay commuting costs, and get no benefits and pay tax on what they do earn. Why did the Tories get in if these cuts are so unpopular. Everyone knows the Tories cut benefits. You can't expect people to be happy paying tax on salaries less than others get on benefits.

HeisInfuriating · 26/09/2015 19:33

Lougle would you have a look at mine? I can't fathom it

Single parent
2x children
Work 21 hours earn £22000
Childcare costs £117 a week

I currently receive £131 a week.

Petrified doesn't come close.
Tia

lougle · 26/09/2015 20:03

Sure Smile

Basic Element 1,960
Couple and lone parent element 2,010

Childcare tax credits (117x52x0.7) 4258.80

Family element 545
Child element 2,780 x 2

Total: 14333.80
Income £22k - £6420 = 15580
Tapered income (41%) = 6387.80
Final amount: (14333.80-6387.80) 7946 (152 per week)

Bear in mind that they may be going on last year's income which may account for the difference, or they may be holding a little back for renewal time so pay a lump sum then.

Same situation next year:

Income £22k - £3850 = 18150
Tapered income (48%): 8712
14333.80-8712 = 5621.80 (108.11 per week)

A drop of £2324.20 (£44.69 per week).

Remember though that if you receive housing benefit and contribute towards your rent, then some of the loss will be made up by HB. However this won't apply if you already get full Housing benefit.

MisForMumNotMaid · 26/09/2015 20:39

Viviennemary i'm glad you're still posting and discussing your viewpoint, its good to try to understand why there's a lack of empathy. The 2.7million families that are effected by the tax credits cuts we're discussing the majority have a full time worker., All the 2.7 million have a worker. They aren't jobless, they have commuting costs, childcare costs, housing costs etc.

Its frustrating that this is the group that are most effected not those not working but able too that I feel you are alluding too?

I do agree with you it would feel tough to be working hard long hours and see someone else getting the same money or more for sitting on their backside. But i don't think that person is happy (i also think they're quite rare, i've no doubt a few exist but they're a convenient image for benefit bashers). We can only move forwards from where we are. We have such a skills shortage and lack of mobility in some of our potential workforce we need to address.

Those working on minimum wage are very unlikely to qualify for a mortgage and those without tax credits aren't paying income tax on that amount either.

What is ironic about cutting tax credits from low earning people in work is that for some it means they'll be far better off not working and living on benefits. Some already would be but have pride and battle on trying to make ends meet themselves.

When my XH left me with two DC of 1 and 3, i managed to keep my business by using local childcare providers and working strange hours when the DC slept. The tax credits ment we were still technically below the poverty line but we could eat and heat the house for a few hours each night Dec - March. We owned our home - just not outright, we were lucky family helped us out with loans to keep it until it sold. If i'd have given up we'd have received significantly more in benefits and also free school meals etc when the children got to that age.

By keeping me in work, we put back into the local economy by employing childcare providers and i stayed sane able to pay tax as well as get tax credits.

As it happens DC1's disability ment that i had little choice but to give up my business when i married my current DH and moved areas. Had DS1 not been disabled and not coped at school/ school not coped with him, i would have been on my feet self supporting after two/ three years society prop up.

If people fall out of work for many years its far harder for them to overcome the threshold of benefit levels vs money available as an employee and getback into work. This is why tax credits can work. They allow people to go for better jobs, work more hours and it gets adjusted without a big benefits cliff that we see with out of work benefits. This is what is also proposed by universal credit but thats a future thing that quite possibly they're trying to stop many working families from ever getting onto by cutting hard now on tax credits as the computer system wouldn't cope with the numbers.

My personal opinion on why the torries got in is because they sadely lacked any opposition and many people couldn't bring themselves to vote. I also believe others voted against Milliband/ Clegg rather than for the Torries.

I incidentally live in a labour area. I don't think i know of anyone unemployed at present, i know one other full time carer and a lot of hardworking families on low wages who work in the many factories that surround the town we live in, or they're cleaners, childcare providers, supermarket staff, paid carers etc that provide the infrastructure to support the rest of us. We need these people, we need a living wage but as its still some years off what are these people ment to live off in the meantime?

ssd · 27/09/2015 11:07

vivienne, I think you are mistaking people who get tax credits and nothing else and pay mortgages/rents, commute to work and pay childcare V people who exist on benefits alone.

There is a huge difference and it would help if you actually worked this out.

We get tax credits and work and commute and pay childcare but as we both earn a low wage we get tax credits. We pay full council tax and school meals etc..same as you do.

Now we are losing £50 a week from next April and we will struggle terribly. I have 2 jobs, dh works full time, all min wage. I have been trying to get another job but am finding it very hard.

If we both gave up work next April we would be better off.

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HeisInfuriating · 27/09/2015 20:01

Thank you lougle
I will look at my budgets. That's so helpful.

I don't get any benefits and I'm about to try and get a remortgage so I'm really worried about my income. We survive on maintenance from ex but it doesn't cover childcare.
I could try and work an extra day but with the extra cost of commuting and childcare, so it doesn't give me much more money in my pocket and reduces my tax credits further. And the kids suffer so much, I don't have time to do homework or clubs as my commute is long.
My childcare bill in August was £1200, admittedly the most expensive month.

I bring home £1350

But I will manage and I won't complain. We're not on the breadline.

MisForMumNotMaid · 07/10/2015 16:08

finally the message has got through that letters are going out to effected households with actual figures in the next few weeks

We may see a few more threads come November on this!

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