Changes to #UniversalCredit in #Budget2021 see the loss of £20 (#KeepTheLifeline) "mitigated" with a reduction in the UC "taper rate" from 63p to 55p.
Let's look at what that means, who that helps and who that hurts.
#poverty #ukpolitics #benefits #UKPoverty #foodbanks
1.
Let's look at what that means, who that helps and who that hurts.
#poverty #ukpolitics #benefits #UKPoverty #foodbanks
1.
It means that now instead of 63p being deducted from Universal Credit for every £1 earned, only 55p will be. Meaning claimants in work are 8p better off per £1 wages earned.
That offsets that £20 for some. Who though? How many 8p's are needed to reach £20?
2.
That offsets that £20 for some. Who though? How many 8p's are needed to reach £20?
2.
It's actually £250 that is needed in wages every month, to offset the £20 cut. Or to put it another way, that's 59h work a month on the apprentice minimum wage, or 29h on the min wage over 23.
At age 23, if you work 7h a week you should be better off with the new rates?
3.
At age 23, if you work 7h a week you should be better off with the new rates?
3.
£8.91/h x 7h = £62.37/week
Convert £62.37/week to £267.30/month (÷7 then x30)
On the old taper you'd have kept £267.30 X 0.37 (what's left after tapering), so that's £98.90, plus £20, so £118.90
On the new rate (use 0.45 not 0.37) it would be £120.29
New is £1.39/m better
4.
Convert £62.37/week to £267.30/month (÷7 then x30)
On the old taper you'd have kept £267.30 X 0.37 (what's left after tapering), so that's £98.90, plus £20, so £118.90
On the new rate (use 0.45 not 0.37) it would be £120.29
New is £1.39/m better
4.
Our apprentice needs 59h a month, or 14h a week @ £4.30/h to earn £55.90 a week, or £239.57 a month.
If old rate he gets to keep £88.64, add £20, becomes £108.64.
New rate would be £107.81. Oops that's lower!
Assuming apprentice works whole hours, he'll need 15h a week!
5.
If old rate he gets to keep £88.64, add £20, becomes £108.64.
New rate would be £107.81. Oops that's lower!
Assuming apprentice works whole hours, he'll need 15h a week!
5.
But wait, this doesn't allow for a bit of disregard. UC has a "work allowance" built in for some (either disabled people, or parents).
It's got 2 rates, we'll use mine first which is £293/month. That's the rate for anyone who gets help with housing costs.
6.
It's got 2 rates, we'll use mine first which is £293/month. That's the rate for anyone who gets help with housing costs.
6.
So in order to be better off on the new rate I would need to earn £250 more than £293- £543.
Divide that by earnings, you get 61h a month or 15h a week on the min wage rate for age over 23 (best) and 126h a month or 30h a week for apprentices (worst).
7.
Divide that by earnings, you get 61h a month or 15h a week on the min wage rate for age over 23 (best) and 126h a month or 30h a week for apprentices (worst).
7.
If you are an apprentice, or a younger person (their min wage rate is very similar) and you don't work at least 15h a week, or 30h if you are a parent or disabled, you lose.
If you are over 23 and don't work at least 7h a week, or 15h for parents or disabled, you lose too.
8.
If you are over 23 and don't work at least 7h a week, or 15h for parents or disabled, you lose too.
8.
But wait, surely it's more admirable and commendable when someone with major challenges puts themselves back in the workforce, like people found to be too sick to work, or working round raising children, it doesn't make sense for them to be bigger lossers?
Well they are.
9.
Well they are.
9.
It gets worse.
Let's say not only are you working as well as raising your children and/or while sick, but let's say you own your own home, or you live with your family and you don't need to pay them rent.
Looking after yourself is surely rewarded by Conservative policy?
10.
Let's say not only are you working as well as raising your children and/or while sick, but let's say you own your own home, or you live with your family and you don't need to pay them rent.
Looking after yourself is surely rewarded by Conservative policy?
10.
Nope. This change works inversely to that.
Work Allowance if you don't get help with housing costs is £515.
Apprentice with no rent, a sickness/disability or kids would need £765/month wages. That's 178h/month or 42h a week.
Over 23 would need 86h/month or 21h a week.
11.
Work Allowance if you don't get help with housing costs is £515.
Apprentice with no rent, a sickness/disability or kids would need £765/month wages. That's 178h/month or 42h a week.
Over 23 would need 86h/month or 21h a week.
11.
Let's say our apprentice is a young man who has a disability, lives with family, has no rent. He'd have to work at least a 42 hour week to be a few pence a month better off under new rules.
In reality apprenticeships are capped at 40h.
He can not win. Rishi robbed him.
12.
In reality apprenticeships are capped at 40h.
He can not win. Rishi robbed him.
12.
You know who else can't win? Muggins here.
See tweet 7, I don't earn min wage so hours per week doesn't apply- what's relevant to me is I would have to make £543 or more each month, to even draw level with what the £20 uplift did.
Do me a favour! I don't even get close.
13.
See tweet 7, I don't earn min wage so hours per week doesn't apply- what's relevant to me is I would have to make £543 or more each month, to even draw level with what the £20 uplift did.
Do me a favour! I don't even get close.
13.
In fact, that I earn anything at all is a small miracle. I do all of my work from my sick bed, with kids either running round me or being my carers. Even the DWP don't think that's sustainable, I'm assessed as LCWWRA (jargon for can't work).
Well boo hoo, I still lose. 😒
14.
Well boo hoo, I still lose. 😒
14.
Least harmed = healthy, abled, childless part time workers over 23 who rent and who can increase their hours at work.
Most harmed = if you don't work at all... OR... If you are working while unwell/disabled, you are young, you have kids and/or you are rent-free.
15.
Most harmed = if you don't work at all... OR... If you are working while unwell/disabled, you are young, you have kids and/or you are rent-free.
15.
That isn't how welfare is meant to work.
Shouldn't it be the greater someone's needs are and the more they do to help themselves (eg. by sorting their own housing or apprenticing), the more we back them up?
I thought self help was meant to be a Conservative principle?
16.
Shouldn't it be the greater someone's needs are and the more they do to help themselves (eg. by sorting their own housing or apprenticing), the more we back them up?
I thought self help was meant to be a Conservative principle?
16.
In this budget the changes to #UniversalCredit have punched down at strivers and the vulnerable.
Sure, they superficially look like they are encouraging self reliance, but dig deeper and they are punishing it.
That leaves me with one big question about Sunak...
17.
Sure, they superficially look like they are encouraging self reliance, but dig deeper and they are punishing it.
That leaves me with one big question about Sunak...
17.
Is he stupid, or is he cruel?
Hard to tell.
But with all the carefully crafted posturing he's making, presenting himself as confident and professional as well as soft and fatherly, I'd not rule out that it's deliberate.
18. End.
Hard to tell.
But with all the carefully crafted posturing he's making, presenting himself as confident and professional as well as soft and fatherly, I'd not rule out that it's deliberate.
18. End.
Who added the £20 on a month instead of a week then? I did.
Urgh, it's because I'm tired 🙄
Situation is much, much worse than above ok? Should have used £86.87 in these sums (which is what the £20 works out to a month), not £20.
Urgh, it's because I'm tired 🙄
Situation is much, much worse than above ok? Should have used £86.87 in these sums (which is what the £20 works out to a month), not £20.
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