From £450 tax cut to child benefit changes, what the Budget means for YOUR finances
SINGLE mum Phoebe Evans says it would be “bonkers” for her to return to work — as she faces losing 74p in every pound she earns after last week’s Budget. The mother of two says she is caught in a “hidden tax trap” after a Sun on Sunday probe found she would be subject to a marginal tax rate three times higher than most workers pay.
, said: “There is a hidden single parent tax hitting mums like me that have to plan around their children’s schedule. “I want to go back to work. I need to restart my career to provide for the girls. But there is no point in me returning to work when I’d only take home a quarter of what I earn.” Phoebe — mum to daughters Shayne, two, and 10-month-old Cove — is one of thousands of single parents struggling to go back to work under the current benefits system.from ten per cent to eight per cent from April, single mums and dads face taking a huge hit as other benefits can also be cut. Social policy software and analytics company Policy in Practice’s Better Off calculator predicts that on a £20,000 annual salary, Phoebe would pay a marginal tax rate of 67.6 per cent for every pound once benefit cuts are factored in.Fans spot Fury's 'terrified' reaction after Joshua's explosive KO of Ngannou A spokesman for Policy in Practice said Mr Hunt could “potentially” do more to bring her tax rate down, but added that single mums are better off than they were five years ago.He added: “The benefits system should support people when they need it and Universal Credit is designed to make sure that work pays. Lots of people want to work and being on benefits shouldn’t stop people. “It’s always worth checking how it will affect you, and there are tools like our Better Off Calculator out there to help you do that.” While Phoebe would lose a sizable chunk of her income in tax by returning to work, the Better Off Calculator finds she will still take home more money in full-time employment. But with the added cost of commuting and the loss of other perks such as free prescriptions and council tax support, Phoebe insists going back to work is unrealistic. She said: “On minimum wage, I’d have to work two or three hours to get enough after tax just to feed my kids. A tub of formula can cost £15 alone. “As a single mum, I have proportionally higher costs than a person without children or a couple. I bear the brunt of all the costs. “To face the prospect of losing discounts on council tax and free prescriptions means I’d have to earn more just to pay my bills. “It needs to be easier, and providing more free childcare hours is only part of the solution. We need more support and help. I want to go back to work. I need to restart my career to provide for the girls. But there is no point in me returning to work when I’d only take home a quarter of what I earn“I am not moaning or demanding more. I am simply the face of a real single mum on Universal Credit who realises she can’t go back to work because I’ll end up worse off.” According to a report by single parent charity Gingerbread, lone parent households are among the most exposed to the cost of living crisis. The charity’s boss, Victoria Benson, said: “Most single parents are in work with many wanting to work more hours. But for every hour a single parent works they need childcare which, as any parent knows, is eye-wateringly expensive, especially when you’re working full-time. “Our research shows that single parents who work full-time are more likely to be in problem debt, with increased childcare costs being the main reason for this.” The Government told the Sun on Sunday: “Our reforms mean households are now at least £6,000 a year better off in full-time work than out of work on benefits, which is why we’re investing billions into our Back to Work Plan. “Universal Credit is designed to ensure people are better off in work and by cutting National Insurance by a third, raising the National Living Wage again next month and making the largest ever investment in childcare in England, we are ensuring work always pays.”He added: 'Under Labour’s broken benefit system, you needed a maths degree to work out if you were actually better off taking a job'But let’s not beat about the bush, it also gives us the means to provide for ourselves and our families.The result? On the average salary, a nurse will see their income rise by over £1,000.And these are tax cuts with purpose.That’s the equivalent of a fifth of all current vacancies. So by making work pay, we are providing more of the staff we know many businesses are crying out for.broken benefit system, you needed a maths degree to work out if you were actually better off taking a job.Universal Credit , we abolished the dreaded “16-hour rule”, boosted childcare support for working parents, and cut the rate at which benefits are withdrawn to smooth the journey into work. The benefit cap we put in place, and welcomed by many readers of The Sun on Sunday, restored a basic but important point of fairness. It ensured households on out-of-work benefits could no longer receive more than the average weekly wage.That’s why I am rolling out the next generation of welfare reforms.announced last week — with 500,000 families now to receive more than £1,200 to help with the cost of raising a family — will smash the barriers many households face to increasing their incomes through work. One minute he is pledging a £28billion spending splurge on green projects, the next he’s kept the policy but ditched the price tag.But amid the chaotic lack of planning, one thing is clear.Their proposals to “end” benefit sanctions send completely the wrong message. And their soft touch on welfare would end up with more people parked on benefits — just like before — and your taxes rising to pay for it.We have a clear plan to get people back into jobs, reduce the reliance on overseas workers and grow theWOOD YOU BELIEVE IT
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