TartyDoris44 Posted June 17, 2013 Share Posted June 17, 2013 (edited) The welfare system in this country is out of control, it is keeping people out of work. I could not agree more, I was looking for three years and nothing I got so fed up I decided to make the decision to go back into full time education to get the job I really want hopefully at the end of it. It is so frustrating nobody gives you feedback as to why they do not choose you, no letter email of feedback it is any wonder so many people choose to stay on benefits. ---------- Post added 17-06-2013 at 17:38 ---------- If you are doing something wrong, it's nice to know what, or what you could change or improve for the next time on the application form or in interview if you get that far wouldn't it??. Edited June 17, 2013 by TartyDoris44 Add In Information. Link to comment Share on other sites More sharing options...
chem1st Posted June 17, 2013 Share Posted June 17, 2013 One of the key points of Universal Benefit (the new system) is to stop that happening. Because MDRs/EMTRs have a massive effect on behaviour. No point in people working for an effective 1p pr hour is there now? Link to comment Share on other sites More sharing options...
Mister M Posted June 17, 2013 Share Posted June 17, 2013 The welfare system in this country is out of control, it is keeping people out of work. Given that some people rely on the benefits system to top up their wages as their employers are too tight to pay a living wage, I'd say that the welfare system is enabling people to work (or subsidising cheapskate exploiters depending on your perspective). Link to comment Share on other sites More sharing options...
Anna B Posted June 17, 2013 Share Posted June 17, 2013 Because MDRs/EMTRs have a massive effect on behaviour. No point in people working for an effective 1p pr hour is there now? can I respectfully ask a couple of questions to assist my education. First of all chem, what are MDRs and EMTRs? And can someone explain how Universal credit works, and when it will be coming in? I really don't know much about it. Link to comment Share on other sites More sharing options...
chem1st Posted June 17, 2013 Share Posted June 17, 2013 can I respectfully ask a couple of questions to assist my education. First of all chem, what are MDRs and EMTRs? And can someone explain how Universal credit works, and when it will be coming in? I really don't know much about it. MDR = Marginal deduction rate. EMTR = Effective Marginal tax rate. Essentially the same thing. It's the amount you lose when your income increases. If your income increases by £1 and you are £1 better off the MDR/EMTR is 0 If your income increase by £1 and you are no better off, the MDR/EMTR is 100% If your income increase by £1 and your 50p beter off the MDR/EMTR is 50%. The beauty of Universal credit, is that it lowers the MDR/EMTR for the poorest, although slighlty increases it for others. Universal credit will have an MDR/EMTR of 65% For ever £1 a person earns, they will be 35p better off. Currently many (particularly the young) face MDR/EMTR of 100%, 96%, 91%. And this is an extremely high EMTR for the poorest on lower minimum wages! A massive work disincentive. Universal credit does not take account of travel to work costs though, so that is a big problem, especially when transport costs are very high now, compared to the 80s, when the 'income disregard' was last increased. Universal credit is not very progressive in my opinion, it is a step in the right direction, but it doesn't go far enough to encourage social mobility. I don't think the poorest should face MDR/EMTRs higher than the EMTR for higher rate taxpayers which currently stand at 47% and is due to fall. If a billionaire earns a quid he gets to keep 53p, If a person on the dole earns £1 he gets to keep 35p, that ain't fair. Link to comment Share on other sites More sharing options...
Cyclone Posted June 17, 2013 Share Posted June 17, 2013 Because MDRs/EMTRs have a massive effect on behaviour. No point in people working for an effective 1p pr hour is there now? We agree on this, it's one of the key things that universal benefit will change. Edit - although I'd still say that yes there is. But then I value self respect as well as which way of life would make me the most money. Link to comment Share on other sites More sharing options...
anywebsite Posted June 17, 2013 Share Posted June 17, 2013 Given that some people rely on the benefits system to top up their wages as their employers are too tight to pay a living wage, I'd say that the welfare system is enabling people to work (or subsidising cheapskate exploiters depending on your perspective). Having a benefit system doesn't need to keep people out of work, but the way it is currently set up does, for some groups of people. There are benefit traps that mean some people are better off on benefits than they would be working, particularly if they take small part time or temporary jobs & don't qualify for tax credits. I'll have to wait & see what the new changes that are coming will mean, I haven't really looked into Universal Credit yet. Link to comment Share on other sites More sharing options...
*_ash_* Posted June 17, 2013 Share Posted June 17, 2013 (edited) And can someone explain how Universal credit works, and when it will be coming in? I really don't know much about it. In short... It will replace 6 current means tested benefits: Income support; Income-based Jobseeker's Allowance; Income-related Employment and Support Allowance; Child Tax Credit; Working Tax Credit and Housing Benefit. You will be able to work and keep most of the credit. Rather than now where it's often not worth doing any work if it isn't full-time or well-paid. This example I put in the calculator: Couple/2kids one under 5/rent £595 month/ Current benefit £1729.26 with work allowance of £43.45/month Universal benfits £1729.26 with work allowance of £222/month If one of the couple work 16 hours/week at min wage, they will take home £2024. ---------- Post added 17-06-2013 at 22:42 ---------- As above but more detail if you want. When both of the couple are out of work, their money is split as such: Base award: £489 Child support: £498 Housing Support: £595 Child benefit: £146 Total £1728 If one works 16 hours at min.wage, other out of work: Base award: £447 Child support: £456 Housing Support: £544 Child benefit: £146 Earnings: £430 Total: £2023 If both do 16 hours at min. wage, it changes to this: Base award: £360 Child support: £367 Housing Support: £438 Child benefit: £146 Earnings: £860 Total: £2171 Edited June 17, 2013 by *_ash_* Link to comment Share on other sites More sharing options...
Anna B Posted June 17, 2013 Share Posted June 17, 2013 Thankyou Chem and * Ash * for your responses to my questions. You've done well to explain what seems to be a complicated concept to a thicky like me - I wouldn't like to be the one who has to work it out... The way you explain it, Universal credit then does seem to be a move in the right direction. Let's hope it does what it's intended to do which is get more people back into work and better off. Link to comment Share on other sites More sharing options...
Happ Hazzard Posted June 17, 2013 Share Posted June 17, 2013 It's a ridiculous situation we have got ourselves into where housing is so inflated in price that people can't afford it without benefits, the inflation is largely caused by benefits themselves (as well as immigration etc) but to right the situation would cause the economy to flatline again since any economic boom in the last 20 years has been due to people havng money due to their houses skyrocketing in price. It's a whole house of cards that will collapse at some point, it's just a question of when. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now