7 thoughts on “The 4.45pm Link

  • Andy

    I’m presuming the point of your link wasn’t just the swearing but Obo’s reaction to the story he linked to. I’ve just added a comment to the original tale and I thought I’d put it up here too.

    “I would strongly recommend to your mate that he gets his calculations checked by somebody professional who has a clue before going through with this move. His current plan appears to be on the advice of ‘a bloke in the pub’ via the Daily Mail.

    I worked for 15 years in welfare benefits advice and I can tell you categorically that the number of situations where you deliberately reduce your wages and end up better off is tiny, the amounts marginal and mostly due to increased costs attached to getting to work, transport and the like.

    The thing about ‘in work’ benefits is that they decrease at a taper with increased income, so at a low income you might be entitled to quite a lot of housing benefit, tax credits etc but at a higher income, although the amount of benefits is reduced, total income is higher.

    The problem is that it’s often not higher by very much and the combined rates at which the in work benefits reduce results in shocking effective tax rates as your wage increases. For some eg where the opportunities on offer include low income you might be entitled to quite a lot of housing benefit, tax credits etc but at a higher income, although the amount of benefits is reduced, total income is higher.

    The problem is that it’s often not higher by very much and the combined rates at which the in work benefits reduce results in shocking effective tax rates as your wage increases. For some eg where the opportunities on offer include interesting rewarding work the small increase in income may seem worthwhile but it’s easy to understand somebody not finding the move to dingy factory work for a small increase in cash being very motivating.

    But there are no benefits that pay for your utilities except annual grants for old people and grants except annual grants for old people and grants for some groups for insulation and stuff. The gas bill has to be paid out of whatever you get from the pay packet and any benefits and tax credits you get on top.

    And you certainly don’t end up better off by taking a £9k drop in your wage believe me.”

    I do wish this myth that you can be better off on benefits would go away and be replaced by knowledge. There is an argument to be had about whether ‘work pays’ but it helps if we have the right one.

    If you were just pointing out a sweary post by another blogger then I’ve just wasted your and your readers’ time. Please feel free to move along…

  • Leo

    Andy:

    You’ve responded to a different post; Craig linked to the one from earlier today.

  • Andy

    Strange, could’ve sworn the link was to the “F***, f***…” post on Obnoxio’s blog before. Which was what I was responding to.

  • somebody

    Where are you finding these obscure blogs Craig? You surely do not have time to trawl the internet for the links.

    More entertaining at the moment is Gove in the HoC doing his arrogant, smart alec act as he announces the cuts in the BSF school rebuilding and maintenance projects. Power has gone to the little shit’s head. He is like a Hitler and really enjoying having all the MPs on his piece of string. He won’t even tell them if schools in their constituencies are affected. Nor will he compensate local authorities for the cancellation payments to building contractors they will be liable for.

    Ms Teather sits lamely alongside in Clegg mode. How long will the LibDems stomach this?

    Did anyone know that there is a Gummer back in the house? Benedict son of John. Con Ipswich. And also the founder of YouGov Con Stratford on Avon.

    http://www.conservatives.com/People/Members_of_Parliament/Zahawi_Nadhim.aspx – a Kurdish Christian apparently.

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