There is an opposition day debate on Tax Credit plans today and no doubt figures will be mentioned re losses that working families will receive. The Institute of Fiscal Studies (IFS) and the Joseph Rowntree Foundation (JRF) are just two such estimates of this in the public domain.
YET none of these estimates takes into account the Conservatives Pay (MORE) to Stay policy that sees families with an income of over £30k per year and living in social housing seeing their rent increase from social rent to gross market rent.
In short the Tax Credit analyses out there do NOT factor in this change that will see a family in Guildford with one parent working full time on £7.20 per hour have to pay £12,000 per year more in rent.
Below are the figures that have taken me ten minutes to work out.
- Wage Income (net) £13,012 (£14,601 gross)
- Tax Credit Income £13,067
- Housing Benefit £5,021
- Child Benefit £3,213
- Total Household (net) Income £34,317 (gross £35,906)
Because the Total Household Income exceed £30,000 limit the current social rent of £145 per week for a 3 bed social housing property increase to £375 per week.
That means a £230 per week increase in rent and in expenditure which is an increase of £11,960 per year in rent under the Pay (MORE) to Stay policy.
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