3 ms·
It's not 63%, it's a reduction of £0.63 in benefits (not in your total income) for each extra dollar you earn in income over the cutoff level. This prevents si
by crooked-v 7y ago
It's not 63%, it's a reduction of £0.63 in benefits (not in your total income) for each extra dollar you earn in income over the cutoff level.
This prevents situations where it's better to stay under a cutoff of X in income until you can jump straight to an income of X income + Y in benefits, while staying on benefits until then.
- deleted 7y ago[deleted]
- johnday 7y agoSurely if benefits are part of your income, a £0.63 reduction in your benefits is a £0.63 reduction in your total income (up until the benefits are zero)? In other words, an effective tax rate of 63% on earnings while you receive a nonzero amount of benefits?