Many of the lowest paid workers in the UK are reported to be going to loose about £1,300 per year.
These cuts are expected to save the UK Government around $4billion per year.
To help reduce poverty from the cuts on Working Tax Credits:
The Government have stated they are going to raise the tax free personal allowance from £10,500 to £11,000, and raise the National Minimum Wage from £6.50 to £7.20 in April 2016, and to £9 by 2020.
A worker on the The National Minimum Wage over 36 hours will then pay about £100 per year less tax, and earn £1,300 per year more.
Many people are said to be going to loose around £1,300 per year in Tax Credits, so it seams they could be about £100 a year better off than they were before the increase in the National Minimum Wage in April 2016.
Seems the Government are forcing employers to pay more so they can pay out less in benefits.
If you are on the National Minimum Wage working 36 hours a week, and not on Tax Credits, you could be £1,400 a year better off.
Many companies now give their workers Zero Contract Hours, so many workers can now find themselves living well below the Poverty Line.
This is a problem that will need to be rectified over the next few years. Only time will tell just how poor some people will become, and what they will do to survive.
Many of the Governments problems are people playing the system, not declaring their full working hours, actual earnings, having kids just to make enough money not to work, and faking health problems so as to be declared unfit for work.
The new Minimum Wage in 2016 of £7.20 an hour, and Living Wage of £8.15 an hour, now being paid by some reputable companies, should go a long way to reducing poverty, but only if people can acquire 36 to 40 hour contracts.
cut from £6,420 to £3,850 from April 2016
£6,420 to £3,850 from April 2016
