Real means testing on child tax and working tax credits

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Real means testing on child tax and working tax credits

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Currently the means testing for child and working tax credits only takes into consideration the income and the amount of dependants.

To be accurate and fair, the means testing needs to take into consideration expenses as well. The following expenses need to be considered:
- rent: on average a council house costs half of a similar house in private rent
- commuting expenses to go to work, mileage or public transport cost to commute to work
- eating out if necessary for work
- tools or clothes allowance for work

On the other hand, some extra income, like maintance, might have to be taken into consideration as well.

We have to ensure, that it pays to go to work. In many councils there is such a shortage of council housing, that nobody who works has a chance of getting a council house. A family on a low income with private rent, has less money to spend than someone on full benefits. Would the outgoings be tested, this would change.

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