Monthly Archives: March 2013
Usdaw Timetable for Cuts Affecting Working Family Budgets (Updated)
Here’s an updated version of the Usdaw timetable on cuts and their impact on family budgets, original version of which is here.
Date | Cut / Change |
+ Gain £ |
– Loss £ |
Who’s Affected |
January 2011 | VAT increased by 2.5% to 20% |
|
Average – 307 |
Average households pay £307 more
Average for those with children is £450 |
Child Trust Fund abolished |
|
– 250 |
Babies born after 1/1/11 have no Child Trust Fund | |
Education Maintenance Allowance abolished |
|
Up to – 1,170 |
Young people in England in Further Ed with household income less than £32400 | |
April 2011 | Tax allowance increased by £1,000 (£700 over RPI x20%) |
0 to + 140 |
|
All basic rate taxpayers earning over £6,700 gain |
NIC threshold & NIC rate increased |
0 to + 120 |
0 to – 200 |
Employees on less than £20,000 gain, higher earners lose out | |
Child Tax Credit increased by £255 (£150 above 4.6% RPI) |
0 to +150 per child |
|
Families gain by no. of children x £150, tapered at 41% of income over threshold | |
Working Tax Credit frozen, basic and 30 hour elements |
|
– 90 or – 125 |
Low wage earners working under 30 hr
Low wage earners working over 30 hrs |
|
Increase Tax Credit claw-back (taper) by 2% to 41% |
|
Average – 160 |
Households lose up to 2% of tax credits
Usual loss = (Income less £6420) x 2% |
|
Couples/lone parent element of WTC rose by CPI, not RPI |
|
– 25 |
All low-middle earning couples and lone parents claiming Working Tax Credit | |
Baby element of Child Tax Credits abolished |
|
– 545 |
Families with new babies or babies under 1 in April 2011 | |
Family element of Tax Credit abolished for higher earners |
|
– 545 |
Families with income between £41,000 and £58,000 | |
Child Benefit frozen |
|
– 49 and – 32 |
For first child up to 16 or 19 if in FT Ed
Also – £32 for each other child |
|
Childcare Tax Credit reduced from 80% to 70% |
|
Up to – 1,560 |
Families claiming CTC lose 10% of childcare cost. Average = £457 per child | |
Sure Start Maternity Grant abolished for 2nd + babies |
|
– 500 |
Lower income families having 2nd or subsequent baby | |
Health in Pregnancy Grant abolished |
|
– 190 |
Babies due after mid April 2011 | |
Benefits to rise by CPI, not RPI |
|
– 50 |
Households lose out by around 1% of all benefits – around £50 | |
October 2011 | Local Housing Allowance rates capped |
|
Average – 468 |
Capped at 30th percentile of local rents. 40% of claimants are in low-paid work. |
April 2012 | Increase tax allowance by £630 (£250 over RPI x 20%) |
0 to +£190 |
|
All basic rate taxpayers earning over £7,850 gain |
Child Tax Credit rises by CPI, but previous increase applies |
0 to +150 per child |
|
Families gain by no. of children x £150, tapered at 41% of income over threshold | |
Family element of Tax Credit abolished for middle earners |
|
– 545 |
Lost if income is over £25,000 (1 child)/ £32500 (2 children)/£39000 (3 children) | |
50+ element of Tax Credits abolished |
|
-1,320 or – 1,965 |
People working 16 – 29 hours pw
People working over 30 hours pw |
|
Couples’ Working Tax Credit based on 24 not 16 hrs pw |
|
Potential – 3,870 |
Couples with children unable to increase hours of work to 24 pw lose all WTC | |
Working Tax Credit frozen
Basic & 30 hour elements |
|
– 205 or – 285 |
Low wage earners working under 30 hr
Low wage earners working over 30 hrs |
|
Working Tax Credit frozen:
Couples/lone parent element |
|
– 135 |
All low-middle earning couples and lone parents claiming Working Tax Credit | |
Child Benefit frozen |
|
– 112 and – 73 |
For first child up to 16 or 19 if in FT Ed
Also – £73 for each other child |
|
Benefits & tax credits to rise by CPI, not RPI |
|
– 100 |
Households lose out by around 2% of all benefits – around £100 | |
April 2013
|
Increase tax allowance by £1335 (£1125 over RPIx20%) |
0 to + 420 |
|
All basic rate taxpayers earning over £8,105 gain |
Child Tax Credit capped at 1% – limits previous increase |
0 to +110 per child |
|
Families gain by no. of children x £110, tapered at 41% of income over threshold | |
Child Benefit frozen |
|
– 143 and – 94 |
For first child up to 16 or 19 if in FT Ed
Also – £94 for each other child |
|
Child Benefit abolished for higher rate taxpayers |
|
-1,055 & – 697 |
Households on over £50,000 lose up to £1055 for 1st child, & £697 for each other | |
Working Tax Credit frozen:
Basic and 30 hour elements |
|
– 260 or – 365 |
People working under 30 hours
People working over 30 hours |
|
Working Tax Credit: Couples/
Lone Parent part rises by 1% |
|
– 170 |
All couples and lone parents on Working Tax Credit lose out | |
Bedroom Tax – 14% or 25% of Housing Benefit |
|
– 624 or – 1,144 |
540,000 households – 1 spare bedroom
120,000 households – 2 spare bedrooms |
|
Council Tax Benefit cut
|
|
Up to – 250 Up to – 600 |
Up to 2.5m recipients not in employment
Almost 700,000 recipients in employment |
|
DLA changed to Personal Independence Payments |
|
Average – 2,480 |
IA says 500,000 will cease to qualify for support, saving £1.24bn by 2015/16 | |
Benefit Cap (in 4 Councils, nationwide from September) |
|
Average – 4,836 |
56,000 households will have their benefit reduced by an average £93 per week | |
Benefits & tax credits to rise by CPI, not RPI |
|
Up to – 150 |
Households lose out by around 3% of all benefits – up to around £150 | |
Localisation of the Social Fund |
|
Loss of Safety Net | Community Care Grants & Crisis Loans abolished. No ring-fenced funding devolved to Councils. | |
October 2013 | Universal Credit: marginal deduction rate rises to 76% |
Average + 2,016 |
Average
– 1,644 |
3.1m will gain on average £168pm
2.8m will lose an average £137pm |
April 2014 | Child Tax Credit capped at 1% (reduces the 2011 rise) |
0 to + 65 per child |
|
Families gain by no. of children x £65, tapered at 41% of income over threshold |
Working Tax Credit increases capped at 1% (after freeze) |
|
– 295 – 415 |
People working under 30 hours
People working over 30 hours |
|
Working Tax Credit: Couples/
Lone Parent part rises by 1% |
|
– 205 |
All couples and lone parents on Working Tax Credit lose out | |
Child Benefit increases capped at 1% (after freeze) |
|
– 162 and – 107 |
£162 less for the first child
£107 less for each subsequent child |
|
April 2015 | Child Tax Credit capped at 1% (reduces the 2011 rise) |
0 to + 5 per child |
|
Families gain by no. of children x £5, tapered at 41% of income over threshold |
Working Tax Credit increases capped at 1% (after freeze) |
|
– 345 – 485 |
People working under 30 hours
People working over 30 hours |
|
Working Tax Credit: Couples/
Lone Parent part rises by 1% |
|
– 255 |
All couples and lone parents on Working Tax Credit lose out | |
Child Benefit increases capped at 1% (after freeze) |
|
– £189 and – £124 |
£189 less for the first child
£124 less for each subsequent child |