. . . when I return to work, I'll only keep 32 pence in the pound for every pound earned over the tax threshold.
22 p for tax 9 p NI and 37p lost from tax credits leaves only 32p. Whilst both of us earned money it was worth me working as I would keep all but the tax and NI. Whilst at the bottom of earnings, it is clear that the Government really makes it difficult for me to take more money home. I haven't even factored in affects on council tax relief and income based- jobseekers allowance yet (the information isn't available to work it out)or indeed the cost of working (transport, clothing etc).
So do not doubt it when people talk about the benefit trap - it's real.
Wednesday, 25 March 2009
The Benefit Trap
An opinionated mother on how government hand-outs combined with high taxes make it uneconomic to work:
Posted by Gilman Grundy at 16:11