:panic: :panic: :panic:
http://www.nurseryworld.co.uk/news/r...charities-say/
that means HALF my parents will be better off back on benefits :eek:
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:panic: :panic: :panic:
http://www.nurseryworld.co.uk/news/r...charities-say/
that means HALF my parents will be better off back on benefits :eek:
I only have one parents claiming tax credits, but it is a worry.
And if they have to work 24hrs a week to claim instead of 16, am I going to have the extra spaces available anyway even if they could increase their hours? My one parents on tax credits hates her job, so I can see she'll just pack it in.
Does it say when it's coming into effect?
Gosh all my parents claim tc even if only small amount ,but most are full amount ,think when grandson is older i will look for new career
Im not sure how many of mine claim as Ive never asked them - I know for sure that one does as she is a single parent and only works 19 hours a week so Im guessing from reading that she now wont get any help with childcare fees unless she can persuade her work to up her hours? :panic:
Thats worrying and could affect us as i wait for my childminding to take off. Only i can work due to my partners condition and then i can only work limited hours outside the home as he struggles to care for our 2 children (10 & 7). :panic:
So much for the government promise that no-one would be better off on benefits than in work! :rolleyes:
Miffy xx
I'm not sure Nursery World have wrote this in the best way.
Yes, parents will have to work 24 hours, but between them, with at least one of them working at least 16 hours. It says nothing about single parents, so assuming that remains the same, and most couples do work more than 24hrs between them.
This is all it details about tax credits, on this website - http://www.guardian.co.uk/society/20...for-vulnerable
• Freezing the basic and 30-hour element of the working tax credit for three years from April 2011 after which they will be uprated by the consumer prices index, rather than by the more generous retail prices index. This will save £625m by 2014-15.
• New rules so that couples with children must work 24 hours between them, with one partner working at least 16 hours a week, in order to claim the working tax credit. This will save £390m a year by 2014-15.
• Reducing the percentage of childcare costs parents can claim through the childcare element of the working tax credit from 80% to its previous level of 70%. This will apply from 2011-12 and will save £385m by 2014-15.
well now i have learned that me and my partner will now have to work 24 hours to recieve wtc. i carnt help thinking that with the new national minium wage at 5.93 per hour will increase our paid earnings up to 143.75 per week which is £7,475 per year (this will be tax free by next april as the personal allowance increses from £6475 to £7475 but not free from ni contributions as they are withdrawn from earnings at 11p in every £1 earned over £110 (£5720 per year) to my maths thats a contribution of about £3.55 per week.
thats not all i have to consider though. because paid earnings will increase from having to do the extra hours to meet the new criteria means that some of our wtc credit will be tappered away at the new 41% tapper rate this is because £7475 paid earnings is higher than £6420 (wtc threshold) in other words we will be £1055 over. and 41% of £1055 is 432.55 (8.31 per week) which is what they will take away from the ellements that make up wtc /ctc combined. now i have 2 children and a partner so we got 2x child elements at 2,300 each the basic element of £1,920 and the couples element 1,890 which when sumed up comes to £8410 (161.73 per week) so £161.73 - £8.31 = £153.42 ammended tax credits after 41% tappering
ok so you think we got off lightly with a loss of 8.31 tax credits and an increase of 3.55 per week ni contributions you thought wrong
now we have to re look at the elegabilty for housing benifit and council tax benift, because paid earnings will have to increase to meet the 24 hour w. tax credit elegability lets do the sums. please note 33.70 child benift is disregarded when calculating housing and council tax and a futher sum of 27.10 is disregarded for travel expenses.
140.20 paid earnings (Net)
153.42 tax credits
293.62 total
293.62-27.10 = 266.52 per week
statue law says that a familyof 4 must have £235.29 per week for living expenses before any reductions can be made from there council tax or housing benifit this is called the applicable ammont. as you can see 266.52 is 31.23 over that ammount
statue law also says for every 1 over the applicable ammount 65p has to contribute to your rent (65%)and 22p has to contribute towards council tax
(22%)
65% of 31.23 is 20.29 is what will be reduced from hb per week. and 22% of31.23 is 6.87 is what will be reduced from ct benfit per week. so to add it all up we will work 8 exrtra hours and loose see below
3.55 ni contributions
8.31 reduction in wtc
20.29 reduction in hb benift
6.87 reduction in ct benifit
39.02 per week total
Thank you for clarifying it :) I feel much better nowQuote:
Originally Posted by mum2two
WOW! that is an amazing set of calculations i have no idea how they work out what we get now let alone what will happen in the future!!!Quote:
Originally Posted by cjackson
This must be why the two parents that claim it have been after copies of their contracts (both mislaid them:rolleyes: ) and also receipts (again both mislaid :rolleyes: ).
One of them told me that Tax Credits said that they want the original contract, I said no, I really don't think so, they can have photo copies but the original contract is mine and I am not sending that to them :eek:
They said that they need to send them off to Tax Credits to prove how much they pay.
Anyone else had this??
yes, we sent the pink copy, they did return it :thumbsup:Quote:
Originally Posted by ~Chelle~
Parent has that one so she can send that one to them xQuote:
Originally Posted by Hebs
Flips is this is almost exactly the same for us! I will have to show my missus later after our mindee's go home. Im worrying so much these days im sure its not doing my health anygood. Ive already got grey hair as it is let alone worrying about how the news keeps banging on about cuts here and cuts there!Quote:
Originally Posted by TheBTeam
I wish Gordon Brown never took office and a suitable person was elected the moment blair left!
I dont believe for a second that the country got into ALL this debt because of labour alone!Quote:
Originally Posted by Jayse74