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

Usdaw Timetable for Cuts to Working Family Budgets

Here’s a really useful table from USDAW timetabling the cuts which will impact on working family budgets from 2010-13. It’s a little out of date now, but still a useful guide.

Date	Cut / Change	+ Gain	– Loss	Who’s Affected
July 2010	Child Trust Fund reduced & Top-ups at age 7 abolished		– £200- £250	Babies born after 31/7/10 only get £50Children under 7 at 31/7/10 lose top-up
January 2011	VAT increased by 2.5% to 20%		Average- £307	Average household will pay £307 moreAverage 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 (£776 over RPI x20%)	0 to+ £135		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 (£128 above 5% RPI)	0 to £128 per child		Families gain by no. of children x £128, tapered at 41% of income over £6,420
	Working Tax Credit frozen		– £96 or- £135	Low wage earners working under 30 hrLow 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 creditsUsual loss = (Income less £6420) x 2%
	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		– £50 and- £35	For first child up to 16 or 19 if in FT EdAlso -£35 for each other child
	Childcare Tax Credit reduced from 80% to 70%		Up to- £1560	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 & tax credits to rise by CPI, not RPI		Up to- £100	Households lose out by around 2% of all benefits – up to around £100
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 (£256 over RPI x 20%)	0 to+ £186		All basic rate taxpayers earning over £7,850 gain
	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		-£1320 or- £1965	People working 16 – 29 hours pwPeople 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 frozenBasic & 30 hour elements		– £197 or- £278	Low wage earners working under 30 hrLow wage earners working over 30 hrs
	Working Tax Credit frozenCouples/lone parent element		– £101	All low-middle wage earners claiming Working Tax Credit
	Child Benefit frozen		– £100 &- £ 70	For first child up to 16 or 19 if in FT EdAlso -£70 for each other child
	Benefits & tax credits to rise by CPI, not RPI		Up to- £200	Households lose out by around 4% of all benefits – up to around £200
April 2013	Child Benefit frozen		– £150 &- £105	For first child up to 16 or 19 if in FT EdAlso -£105 for each other child
	Child Benefit abolished for higher rate taxpayers		-£1,055 &- £ 697	Households on over £42,500 lose £1055 for 1st child, also £697 for each other
	Working Tax Credit frozen		– £303 or- £428	People working under 30 hoursPeople working over 30 hours
	Benefits & tax credits to rise by CPI, not RPI		Up to- £300	Households lose out by around 6% of all benefits – up to around £300
	Start to transfer those on Tax Credits to Universal Credit	?	?	Rates unknown as yet but taper increases to 44% (76% for taxpayers)