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workingpoor

Tax Credit Bonus - Help To Save

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What's with special savings rates for different groups of people?

Pensioners receive a higher savings rate through pensioner bonds and now people on Tax Credits will receive a £1200 savings bonus.

What about everybody else paying for all of this

what rate do they get?

Can i point out that there is no capital limit for tax credits so someone with £kk's sitting in the bank would receive this.

Employees on in-work benefits, such as tax credits, who put aside £50 a month would receive a bonus of 50% after two years - worth up to £600.

That could then be continued for another two years with account holders receiving another £600.

http://www.bbc.co.uk/news/business-35799404

That's just gifting select people £25 a month

talk about a helicopter drop.

A 50% interest rate? with no strings instant access?

Where do i sign up?

Edited by workingpoor

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Could this not just be a ploy to get people to move onto UC?

From what I understand it rolls out to all new claimants this summer. Then by 2018 move over everyone.

I think its still unclear if everyone on UC will have to sign on and those in work explain what they are doing to get more hours / money.

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Could this not just be a ploy to get people to move onto UC?

From what I understand it rolls out to all new claimants this summer. Then by 2018 move over everyone.

I think its still unclear if everyone on UC will have to sign on and those in work explain what they are doing to get more hours / money.

Trust me,everyone wont be on by 2018,single people maybe,people on tax credits with children now,a few at most.

Another crazy scheme this from the government.Millions wasted to run it.I know people on tax credits with half a million of assets,one takes people out on horses,self employed,makes token amounts and gets tax credits.House and paddock all paid for,£300k+ investment portfolio set up be her late husband.Im sure she will use the free £1200 to pay the insurance on her BMW.

At the same time they are sanctioning genuine unemployed for the smallest reason.

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Not more help....retoric, doubt there will be much take up by those on the benefits using the benefits they get, how can people on benefits afford to borrow or save?....the whole point of benefits is to cover day to day necessary expenses....no spare left.

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....the whole point of benefits is to cover day to day necessary expenses....no spare left.

On one hand this statement makes it all seem nice and helpful. On the other hand it shows just how bad things are. People being given other people's money so they can get their bread and milk...... They call it progress.

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Trust me,everyone wont be on by 2018,single people maybe,people on tax credits with children now,a few at most.

Another crazy scheme this from the government.Millions wasted to run it.I know people on tax credits with half a million of assets,one takes people out on horses,self employed,makes token amounts and gets tax credits.House and paddock all paid for,£300k+ investment portfolio set up be her late husband.Im sure she will use the free £1200 to pay the insurance on her BMW.

At the same time they are sanctioning genuine unemployed for the smallest reason.

Yes...there are loopholes and yes there are people that take advantage of them and yes those who need it most do not know they are entitled to it or know where to go to get it.....sanctioning is another numbers game where there are some who need it most but end up with nothing....bit of a mess really.

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On one hand this statement makes it all seem nice and helpful. On the other hand it shows just how bad things are. People being given other people's money so they can get their bread and milk...... They call it progress.

There again there are some who will never be satisfied with what they get whether they are given it or work for it, or work and are given it or happen to work for a employer who offers job security with excellent in work benefits and rates of pay.....

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Trust me,everyone wont be on by 2018,single people maybe,people on tax credits with children now,a few at most.

Another crazy scheme this from the government.Millions wasted to run it.I know people on tax credits with half a million of assets,one takes people out on horses,self employed,makes token amounts and gets tax credits.House and paddock all paid for,£300k+ investment portfolio set up be her late husband.Im sure she will use the free £1200 to pay the insurance on her BMW.

At the same time they are sanctioning genuine unemployed for the smallest reason.

I've never understood why UC gets so much hate around here. Yes its wasteful government IT with failures (they got accenture in to do the bulk of it...) but if anything it will make it harder to get working tax credits and housing benefit. Those schemes are the two worst IMO. Surely it would be good to have all these self employed nail technicians that run out of their lounge to sign on every week to explain why they haven't earnt enough to move off them or threatened to be sanctioned.

Locally all single people without any assets and children (and about 50 other things) are on UC and in a few months they are supposed to be rolling it out to all new claimants. Not sure if that is just JSA people, they dont know themselves.

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Was just about to come on to post this.. see Quote about bread above and all that..

Also what about low paid full timers who's rent eats up saving potential whilst people on Tc/Uc whatever are creaming it and getting cherrys added on top.. Tc is the new middle class

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I would question the 'work will always pay' mantra.

With all the freebies that come your way with even £1 of tax credits, there must be a point where you lose quite a lot for an extra hour worked.

I personally think that if you rent with 2 kids, there is very little difference between earning £15k and £40k. Madness.(to be fair, in the SE both positions would be skint)

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What? How did we go from cutting them to this?

A whole generation who've spent their entire working lives on benefits. No wonder Osborne needs to cut.

What exactly is this nudge supposed to encourage, anyway?

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I've never understood why UC gets so much hate around here. Yes its wasteful government IT with failures (they got accenture in to do the bulk of it...) but if anything it will make it harder to get working tax credits and housing benefit. Those schemes are the two worst IMO. Surely it would be good to have all these self employed nail technicians that run out of their lounge to sign on every week to explain why they haven't earnt enough to move off them or threatened to be sanctioned.

Locally all single people without any assets and children (and about 50 other things) are on UC and in a few months they are supposed to be rolling it out to all new claimants. Not sure if that is just JSA people, they dont know themselves.

Its not hate for the idea of UC,its actually pretty close to a decent system for linking in work/out of work welfare.It also can be tweaked so it isnt too generous etc.The problem is it cant/wont function without a fully working real time interface with HMRC (and there isnt one).Single people are all being done by hand each month.People at the DWP are entering their details into the system.Single people are easy to do.It takes a few minutes.

Couples who both work different hours each month with children are very difficult to do by hand.Each Jobcentre area probably has beween 3000 and 20,000 claims for tax credits/income support.It would take a few years to do each months.The thing with UC is to ignore everything they say until they tell you every tax credit claim in one Jobcentre area is now on UC.Until that happens,UC doesnt exists for anyone but the single person,a tiny amount of claims.

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Its not hate for the idea of UC,its actually pretty close to a decent system for linking in work/out of work welfare.It also can be tweaked so it isnt too generous etc.The problem is it cant/wont function without a fully working real time interface with HMRC (and there isnt one).Single people are all being done by hand each month.People at the DWP are entering their details into the system.Single people are easy to do.It takes a few minutes.

Couples who both work different hours each month with children are very difficult to do by hand.Each Jobcentre area probably has beween 3000 and 20,000 claims for tax credits/income support.It would take a few years to do each months.The thing with UC is to ignore everything they say until they tell you every tax credit claim in one Jobcentre area is now on UC.Until that happens,UC doesnt exists for anyone but the single person,a tiny amount of claims.

Oh I see, that makes sense why people vent on it. What a mess.

Is there going to be a real time interface soon then? My JCP thinks everyone new will be on it by the summer.

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Perhaps the intention is to introduce a savings cap to tax credits in about two years' time. If you've got more than, say, £1199 in savings at that point then you don't qualify.

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Oh I see, that makes sense why people vent on it. What a mess.

Is there going to be a real time interface soon then? My JCP thinks everyone new will be on it by the summer.

I think the plan is to fax the details over to each Jobcentre for now.Its very hard to get any info on it.When they say "everyone" they mean single claims i think.

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Perhaps the intention is to introduce a savings cap to tax credits in about two years' time. If you've got more than, say, £1199 in savings at that point then you don't qualify.

Very likely.I could see that being set at £4k.They might also abolish crisis loans.There might be other changes coming on tax credits and this is to deflect away the headlines.Perhaps on hours rules etc.

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Guest BillyNI

Yes...there are loopholes and yes there are people that take advantage of them and yes those who need it most do not know they are entitled to it or know where to go to get it.....sanctioning is another numbers game where there are some who need it most but end up with nothing....bit of a mess really.

I wish there was a way to upvote, because that is exactly my take on it.

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On one hand this statement makes it all seem nice and helpful. On the other hand it shows just how bad things are. People being given other people's money so they can get their bread and milk...... They call it progress.

It is the way of reality.

bread and milk exist, or they dont. unlike cash, which can exist or not at the whim of a Government.

taking money from one to hand to another is almost mute with deficits running at 100bn per year.

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Apparently they're due to start April 2018, with the "bonus" not being paid until you have two years of savings. So that's April 2020... nicely timed for the next election. The Help to Buy ISA is timed for around then too.

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Mind you, the BBC is reporting that the Budget is to cos this at £70m - only enough to help 600,000 people paying in £10 a month, a fifth of those actually eligible.

So another big noise / low impact scheme.

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I think the plan is to fax the details over to each Jobcentre for now.Its very hard to get any info on it.When they say "everyone" they mean single claims i think.

You are joking about faxing right?

Certainly no one at the JCP knows what is happening, told rough things that change like the wind.

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It is essential people start saving.

But if you get top up benefits and can save you are living the dream.

I can hear the sky contracts being cancelled right now.

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