Emergency Budget: tax credit cuts for millions

dmg24

LizzieS wrote: »

Gains and losses quoted separately for those earning under 40K:

Taper rate goes up at both levels, if your earnings are 20K you lose £271.60pa, if you earn £30,000 you lose £471.60pa from next April.

Gain £150pa per child from next April (additional to normal increase).

Baby element of an additional £545 removed from next April (includes the extra age of up to 3 which Labour had proposed to add).

Increases in income above 25K currently do not affect awards - from next April it is reduced to 10K and then 5K 2 years after. (Back to the days of masses of overpayments)

Elements will increase by Consumer Prices Index (usually lower than current RPI used)

If on benefits:

Gain £150 per child from next April (plus normal increases).

Lose baby element of £545 (as above).

From 2012/13:

Minimum allowance of £545 is removed from a guaranteed income to be part of taper rate. This could wipe out awards for those only receiving £545pa (or reduce it) from next April.

50+ element removed.

Introduces a new disregard for reductions to income. Currently if you end up out of work your award would be recalculated on your total income - you will have to stand a loss of 2.5K and they will recalculate it on any further loss. Basically translates that you are punished for losing income by up to £1025 compared to what you would get under current rules (and get an insult of cont based JSA for 26 weeks).

Reduce backdating for new claims and changes from 3 months to 1 month

Child element goes up by £60pa per child

Thank you, but I wanted to know how many millions of families will be affected.

Sparklyfairy

Motherhubbard wrote: »

Can anyone tell me what this means in the budget??

There will be changes to the income levels (thresholds) and withdrawal rates for claiming Child Tax Credit and Working Tax Credit from April 2011. These include:

• raising the second withdrawal rate (the amount taken off your tax credit entitlements depending on your income) to 41% from 6.67%

I can't decipher what it means, but I'm curious too. Anyone?

jellyhead

dmg24 wrote: »

Thank you, but I wanted to know how many millions of families will be affected.

maybe they mean savings of millions of £?

Sparklyfairy

Sparklyfairy wrote: »

I can't decipher what it means, but I'm curious too. Anyone?

Ok, I *think* I might know this...when you get your CTC award, they give you a total amount listed based on how much £ you have earned, how many children, etc. Then under that figure it says something like "Reduction due to your income"..this figure is currently based at 6.67% but will RISE to 41% :eek:

Motherhubbard_2

Sparklyfairy wrote: »

Ok, I *think* I might know this...when you get your CTC award, they give you a total amount listed based on how much £ you have earned, how many children, etc. Then under that figure it says something like "Reduction due to your income"..this figure is currently based at 6.67% but will RISE to 41% :eek:

Oh my god, that would effect a LOT of people surely??

I would be better off on IS at this rate!!:mad:

lovetowinacar

Tigsteroonie wrote: »

Not sure I agree with them removing the Health in Pregnancy grant.

The government's own website says:
[/LIST]Well, even in a second (third, fourth) pregnancy your general health and well-being still need to be supported.

Which can be used to purchase anything including fags and booze - shame it isn't given in healthy food vouchers and so very pleased that the £500 for each child is stopping some of the IS single mothers boast about what they spend this on - as someone said earlier a new pram for each baby - and only the best naturally when not paying for it themselves!
:rotfl:

WorriedMart

Ok, I *think* I might know this...when you get your CTC award, they give you a total amount listed based on how much £ you have earned, how many children, etc. Then under that figure it says something like "Reduction due to your income"..this figure is currently based at 6.67% but will RISE to 41% :eek:

I can't believe that - I would think it would be from 6.67% to 41% after the new 40k threshold.. it is the withdrawal rate from 40k surely?.. :cool:

Sparklyfairy

Motherhubbard wrote: »

Oh my god, that would effect a LOT of people surely??

I would be better off on IS at this rate!!:mad:

Where did you see this? I can't imagine it's a blanket rate, but who knows!

Sparklyfairy

WorriedMart wrote: »

I can't believe that - I would think it would be from 6.67% to 41% after the new 40k threshold.. it is the withdrawal rate from 40k surely?.. :cool:

Lets hope so!

debrag

I'm just hoping that these medicals mean more people will be shown to be able to work.
I agree with parents being expected to work fro school age.

Not sure about HB though:

Housing benefit. From April 2011, the maximum allowance per property size will be capped, those who are expected to work will see their receipt of payments time-limited and restrictions will be placed for those of working age in the social rented sector whose property is larger than their household size warrants.

How does this work?
Is it taking about the £400 per week max for LHA?
Would you be expected to downsize in a HA property or move out of HA property in a given time if working?
Will people on JSA have a set time to find work before benefits drop?