Originally Posted by
Terpe
Again from the report:-
The current maintenance requirement assesses the post-tax income after housing costs of the sponsor‟s family against an income threshold based on Income Support. As outlined in Chapter 2, the income threshold (post-tax after deducting housing costs) for a two-adult family, representing the case where a lone spouse/partner joins a sponsor, is £105.95 per week.
In the current maintenance requirement, housing costs are deducted from the sponsor‟s family‟s income, while in Chapter 4 we assumed that no such deduction was made. We make two assumptions regarding housing costs, which are:-
- first, that housing costs are zero; and
- second, as in Chapter 4, that housing costs are £119 per week (i.e. £100 per week in rent plus £19 per week in Council Tax).
Combining the assumptions given above allows us to compare the range for the income threshold that we recommended above with the threshold under the current maintenance requirement:-
- Under the assumption that housing costs are zero, the equivalent current gross income threshold would be £5,500 per year.
- Under the assumption that housing costs are £119 per week, the equivalent current post-tax income threshold is £224.95 per week (i.e. £105.95 plus £119). The equivalent current gross income threshold is therefore £264 per week, or £13,700 per year.
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