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The Budget

(57 Posts)
Gracesgran Tue 23-Jun-15 09:22:27

Cameron's statement about the "merry-go-round" of the Treasury giving cash to working people with one hand and taking it away with the other seems pure logic ... except that would not save the government one penny. If you took people out of tax but at the same reduced their benefits by the same amount you would have a zero sum solution. So where is he going to cut?

This article is interesting, particularly the paragraph which flags up child tax credit as a possible target.

Newsnight's Allegra Stratton got the first whiff of this a couple of weeks ago. She reported that ministers were studying the work of the Institute for Fiscal Studies which noted that £5bn a year could be saved by returning child tax credit to the level it was just over a decade ago. The IFS estimates that this would hit 3.7 million low income families by £845 per child - producing an average loss of £1,400 per year - although some of these would be future rather than current recipients.

As grandparents, do we have a view on this? How many of our children will find it an incentive to go out to work or work more - the seeming intention? It is too easy to talk about the affect on "others" and decry the so called workshy that the Conservatives and their press like to attack but what about those we actually know about - our own children and grandchildren?

Riverwalk Thu 25-Jun-15 17:56:24

We need an economist here to sort us out! Otherwise it's comparing apples with pears.

'Top 10%' is different from 'Top 10% of earners'.

Based on nationwide property values I'd be up with the big boys ...... but based on income I'm definitely lower down the food chain!

whitewave Thu 25-Jun-15 17:48:19

No soon read carefully grin 151k is the household income of the top10% of earners. What I am trying to do is to compare those at the bottom household income I.e.the minimum wage with those at the top. Although to be honest I am not sure it is meaningful, because those with high incomes generally have access to other wealth.

soontobe Thu 25-Jun-15 17:47:41

No. Sorry. It was from 2012, so I thought it would be out of date. I dont tend to read links too far back.

Ana Thu 25-Jun-15 17:41:20

Didn't you read my link? confused

soontobe Thu 25-Jun-15 17:38:24

I have seen figures bandied about that the top 5% is assets over £450,000 or thereabouts.

But I think that we are talking at cross purposes here.
Have you got a link whitewave? Saying that the top 10% income wise, earn over £150k still seems high.

whitewave Thu 25-Jun-15 17:30:42

The figures come from the ONS. We aren't talking about wealth. Of course there are miriad other ways of wealth accumulation but we are ignoring that

Riverwalk Thu 25-Jun-15 17:22:50

This is a question for Radio 4's More or less.

Riverwalk Thu 25-Jun-15 17:21:32

Ana I expect there's no exact science here!

It could mean that 90% of the population have so little that it doesn't take much to be in the top 10 %.

soontobe Thu 25-Jun-15 17:11:03

Yes Ana. Not counting the mortgage part of it of course.

And in case anyone is wondering, no our earned income is not above 150k per annum!

Ana Thu 25-Jun-15 17:10:16

Sorry, 2012.

www.theguardian.com/money/2012/dec/03/richest-10-uk-households-40-per-cent-wealth-ons

Ana Thu 25-Jun-15 17:08:39

'The entry level into the top 10% of wealthy households is currently £967,000 in net assets, the ONS said, while membership of the top 1% comes with assets of £2.8m or above.'

From a 2011 Guardian article.

Ana Thu 25-Jun-15 17:05:27

So anyone owning a house worth £151,000 or over is in the top 10%? hmm

That doesn't seem right. There must be an awful lot of people in that top 10%...

Riverwalk Thu 25-Jun-15 16:52:35

soon is correct - when the press talk about the top 10% it includes assets such as property, savings and pensions.

whitewave Thu 25-Jun-15 16:49:46

soon grin. No that figure is earned income. If it included assets anyone with a house would be included. If your income from business in the form of drawings or profit after tax being paid directly to you is ,151k or more than how lovely you are rich!!!!!!

Ana Thu 25-Jun-15 16:41:20

How can it include assets such as houses? My house is worth more than £151,000 but I'm sure as hell not in the top 10%! grin

soontobe Thu 25-Jun-15 16:37:59

It includes assets, such as houses and businesses. Our business is in a sector that is not doing well nationally, in any way.
So yes, we are in the 10%, but our income is totally tied up with our self employed business. And all businesses are different.

whitewave Thu 25-Jun-15 16:31:09

So fou d out that top 10% household income I.e.medium is £151000. Now must work out if that is after or before tax plus how many people that represents
Busy today getting ready for walking hol in the Dales

durhamjen Thu 25-Jun-15 13:46:00

Any grans offering to admit to being in the top 10%?

whitewave Thu 25-Jun-15 09:26:36

Thinking about the government attempt I g to change the narrative with regard to child poverty. It actually makes no difference where the line is drawn because we know that it is almost impossible for a family to live on the minimum wage where both parents work. So really they can set the child poverty line where they like - most people will understand the actuality behind the figures. Perhaps it is time to look at the richest say top 10% and see how they are managing in this time of austerity. Not sure how I will do a budget for them though as their world is out with my experience. Perhaps a gran could help me with ideas!!!!grin

Anya Wed 24-Jun-15 22:42:07

I though goalposts got moved rather than changed?

Anya Wed 24-Jun-15 22:40:57

How can an idea be a fact??

durhamjen Wed 24-Jun-15 20:23:24

One of the more harmful ideas is the fact that they are going to change the way that child poverty is assessed.
The reason statistics are collected is to monitor the scale of a problem and measure progress over time.
If you change the statistical base, you try to change the perception of the problem. You distort measurement over time by creating a discontinuity. You also try to create a changed response.
It's the same with collecting NHS or unemployment statistics. Change the goalposts and people forget where they were originally.

durhamjen Wed 24-Jun-15 19:22:31

secure.38degrees.org.uk/page/m/74c07a40/2d1c5aab/796cb8f4/4631d13b/133944146/VEsD/

To ask Cameron if he would very kindly not put poor hardworking families into greater poverty.

durhamjen Wed 24-Jun-15 19:13:54

A lot of them will be working for the council or government departments, on part-time work.

Did you notice how Camoron attacked the Labour party by saying they wanted a low wage economy?
It's mainly Labour councils who are paying the living wage.
Going to be interesting to see how many employers attack him, downtoearth, and withdraw donations to the Tory party.

Gracesgran Wed 24-Jun-15 19:08:12

I watched PMQs too Whitewave and thought HH was good. As she pointed out those on minimum wage would have to have a 25% rise on the day that they cut the Tax Credits to put them in the same position and that is not going to happen, is it? Although companies like the big supermarkets could and should be doing it, small businesses would struggle.

She also made the point that although the Conservatives chime on about not leaving our "children" in debt in the future it seems to be OK to put children into poverty now.