Tuesday, 30 September 2014

Realist, Surrey

Realist, Surrey

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Comments (1724)

  • Comment on: Visions and promises

    Realist, Surrey's comment | 30/09/2014 9:41 am

    We now have a Catch 22 situation with low paid workers - which includes close to half of all workers.

    Reason being that most will be subject to some welfare top up - eg Tax Credits/HB etc.

    Extra earned income is then clawed back at the rate of 85% of net extra earned income - and for earnings above the 10k tax threshold - means that only 10.2% of the extra gross is netted by the worker.

    Any such worker with extra childcare/commute costs will then see possibly a negative impact on net wages.

    In the NHS where pension contributions go from say 5.6% @21k gross to 9.3% @ circa 27.5k gross - even without other extra costs the net increase can be minimal.

  • Comment on: Tories would freeze benefits for two years

    Realist, Surrey's comment | 30/09/2014 9:26 am

    The problem with wage rises for the lower paid - is will it put any more cash in their pockets?

    Many of the lower paid are already supplemented with Tax Credits/HB etc - and with the 85% welfare clawback from any extra NET EARNED INCOME - any earnings over £10k annually are showing only a net extra of 10.2%.

    Even that 10.2% can be turned in to a negative amount via commute/childcare costs etc.

    Only when all welfare top up is eradicated via wage increase - does the clawback cease.

  • Comment on: Britons think social tenancy a 'lifestyle choice'

    Realist, Surrey's comment | 29/09/2014 6:41 pm

    For any govt there will be tough decisions to be made - globalisation/automation are culling jobs - and will likely continue doing so.

    Both white and blue collar roles have been lost in their millions already.

    DWP are outsourcing IT work to India (80% discount) but offset by increased welfare paid to their former IT staff.

  • Comment on: Tories would freeze benefits for two years

    Realist, Surrey's comment | 29/09/2014 5:12 pm

    Working age benefits are set to rise by 1% in April 2015 again - so any freeze would not be effective until April 2016 - and subject of course to a Tory led government.

  • Comment on: Tories would freeze benefits for two years

    Realist, Surrey's comment | 29/09/2014 3:18 pm

    Biggest recent rise in HB overall was the 5.16% increase in SRS rents in April 2014.

    LHA in PRS was cut to 30th percentile in April 2012 and frozen at that level ever since - apart from the 1% welfare rises for 2013/14/15.

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