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Response to dipsydoodle (Reply #2)

Mon Jun 11, 2012, 07:45 AM

3. That's the £18,600 figure, I think; the higher ones are based on mean pay

Here's the Migration Advisory Committee report: http://www.ukba.homeoffice.gov.uk/sitecontent/documents/aboutus/workingwithus/mac/family-migration-route/family-migration-route.pdf?view=Binary

Our preferred threshold using the benefits approach is £18,600 per year (option 7, two-adult household). This figure was calculated by making the following assumptions, which we believe to be reasonable:
 Because the question above asks us what the income threshold should be to ensure that the sponsor‟s family does not become a „burden on the state‟, the threshold is set at the point at which the family is not entitled to receive any income-related benefits (including Tax Credits).
 The amount of rent that the sponsor‟s family pays is equal to the unweighted average of the Local Housing Allowance amounts for a one-bedroom property for Great Britain, because this is likely to best represent the „typical‟ family.
 The household consists of two adults, to compensate for the relatively narrow interpretation of „burden on the state‟ under this approach, and to capture the impact in terms of benefit entitlement of the addition of an adult to a household.

Our preferred threshold using the net fiscal approach is £25,700 per year (option 9, one-adult household). This figure was calculated by making the following assumptions:
 The threshold is set equal to mean household income, to capture the approximate point at which a household might reasonably be expected to make a neutral net fiscal contribution.
 The household consists of one adult, because we have assumed that the income of the spouse/partner is not taken into account when calculating the sponsor‟s family‟s income.

How the Home office arrived at the huge figures for families with children first proposed (eg £62,600 for 3 children - 2.43 times the level for 2 adults) isn't clear - the MAC's upper figure based on maintaining an equivalent standard of living says a 3 child, 2 parent family needs 180% the income of a 2-adult household. The 3 child, 2 parent household level at which they would receive no benefits is calculated as £27,200.

So the Home Office's first try seemed to increase the income even above the highest level the MAC suggested, when looking at children. It's about £12,000 per child. Since they are assuming only the British spouse will work, they don't assume they pay for child care. I don't think any other government figures reckon you need £12,000 extra in income per child. I think they must have added on some to say "we want some extra tax for schooling and healthcare".

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dipsydoodle Jun 2012 OP
muriel_volestrangler Jun 2012 #1
dipsydoodle Jun 2012 #2
LineLineLineNew Reply That's the £18,600 figure, I think; the higher ones are based on mean pay
muriel_volestrangler Jun 2012 #3
dipsydoodle Jun 2012 #4
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