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Those on Low Income

Those on Low Income. Bridget Robinson, Sam Murdoch, Gillian Swarbrigg, Emma Sim & Lewis Ingram ! . Contents. 1. Minimum Wage 1.1 Disadvantages of Minimum Wage 2. Income Support 3. Working Tax Credits 4. Local Housing Allowance 4.1 Controversies and Successes . 1. Minimum Wage.

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Those on Low Income

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  1. Those on Low Income Bridget Robinson, Sam Murdoch, Gillian Swarbrigg, Emma Sim & Lewis Ingram !

  2. Contents • 1. Minimum Wage • 1.1 Disadvantages of Minimum Wage • 2. Income Support • 3. Working Tax Credits • 4. Local Housing Allowance • 4.1 Controversies and Successes

  3. 1. Minimum Wage Current NMW rates; There are different levels of NMW, depending on your age and whether you are an apprentice. The current rates (from 1 October 2011) are: £6.08 - the main rate for workers aged 21 and over  £4.98 - the 18-20 rate £3.68 - the 16-17 rate for workers above school leaving age but under 18 £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

  4. 1.1 Disadvantages of Minimum Wage • A minimum wages can cause cost push inflation. • Minimum Wage can cause unemployment if labour markets are competitive. • The competitiveness of UK goods abroad can suffer compared with low wage economies, such as China and India.

  5. 3. Working Tax Credits • What are Working Tax Credits:  Working Tax Credits are based on the hours which you are required to work and be paid for in return.  You are able to claim Working Tax Credits whether you’re an employee or self-employed.  However Work which is described as being not paid for in return means that he/she will not be entitled to receive Working Tax Credits.  If he/she is caring and/or responsible for children then this tends to mean that he/she are required to work a certain amount of hours if they wish to receive Working Tax Credit.  For someone who is aged 25 or over they would have to do over 30 hours of work each week to be able to benefit from working tax credits Likewise for a person who is classed as being “disabled” they also have to work a required amount of ours before they are eligible for working tax credits. • Working Tax Credits are paid back to the individual at a later date

  6. 4. Local Housing Allowance • Aim – to help people pay for their rent. • Entitlement; • must pay rent and be on low income. • if you’re responsible for paying rent for your house • If you are paying rent to anyone but the crown • means tested Cost to the government – housing benefit had risen from £14bn to £21bn in the past decade. Reforms and cuts have recently been made set out in the 2010 Emergency budget by Chancellor George Osbourne. Cuts save £1.8bn a year. Cost of £120million a year due to surge in homelessness.

  7. 4.1 Controversies and Successes • Controversies: • Complexity of system – takes an average of 48 days to process claims in 2002-2003 • Poor administration – according to shelter 680,000 people are missing out worth £1bn per year. • Fraud – the systems lack of monitoring caused fraud and error caused by admin problems. • Blamed for unemployment • Blamed for homelessness • It has now become uneconomical to have paid work • Successes • It prevents many people every year becoming homeless • It helps put those in need • The money is being spent on the right thing

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