BoldonLad
Old man on a bike. Not a member of a clique.
- Location
- South Tyneside
You're on £35k in Wolves with two teenagers and renting a 3 bed. You're allowed a 3 bed because you've both a boy and a girl and they're past the age of puberty.
Universal Credit will pay £640 but the £600 for the rent is part of the calculation. You don't get that as well.
Your monthly take home after tax/NI and pension contributions is about £1850. You keep the first £344 as a Work Allowance the rest counts against Universal Credit as a taper rate of 55p for every £1 earned.
First, thank you for the example.
The bolded bit, I find totally unfair, it is like being taxed at 55%, although way below the higher earnings tax threshold. I don't understand why the taper rate cannot be just that, a taper, not a cliff edge.
Not saying this is your fault by the way, I appreciate you simply administer the system, not design it.