Emergency Budget: tax credit cuts for millions

KxMx

Matty23 wrote: »

What is excatly the full story on IB?, Are they definatly stopping it or tranferring it?, Will it save money aswell?, I did'nt see nothing about it as I was in loo for some part of it!.:D

Previously announced that all claimants will be re-assessed from April to check eligibility. Is still going to change to ESA eventually as far as I know. Also any rises will be linked now to the Consumer Price Index.

Emmamumof2

Tax credits amendment not that clear from the announcements:
Commentary on Telegraph website says:
12.59 A raft of cuts to tax credits will be introduced. Families earning more than £40,000 will have their tax credits reduced, in addition to several other reductions.

So it doesnt say persons earning more than £40,000 will not be entitled to any tax credits.....

Curlywurli

KxMx wrote: »

I agree it does seem fair. All other medical benefits include a medical exam so should DLA should to. And realistically they might be out of power then!

My sister has Down's syndrome. She has to go to the doctor every year to prove that she still has it!

With regards to the tax credit, I understood it as if you earn over £40000 then you won't be getting it.

Matty23

Ah ok, Well i must admit i'm suprised that they have'nt gone too far and made some rash choices, So i shall give it a year and see how it go, Would like to see the figure this time next year and see how much they actually saved.

KxMx

Curlywurli wrote: »

My sister has Down syndrome. She has to go to the doctor every year to prove that she still has it!

I know you do get medicals now with DLA, never said otherwise, but now everyone will have to have one. In your case that sounds like an incompetent Decision Maker!

livewire600

it doesnt say you wont get any (telegraph does) it says over 40k will have their child tax credit cut, my understanding is that is where the new taper will begin

sinstar

No, as that would mean payments for those earning high £40k.

As opposed to the some people earning in the high 50s at the moment getting some kind of payment - that is the change.

At the moment the 'Second income threshold' is £50,000 - meaning the family element starts to taper away at £50,000. As far as I can see the Second income threshold is being reduced to £40,000. Which means the basic family element will now start to taper down at £40,000.

mitchaa

Income support ceases when child reaches 5 from April 2011. Moved onto JSA

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/documents/digitalasset/dg_188581.pdf

Page 40

mitchaa

sinstar wrote: »

As opposed to the some people earning in the high 50s at the moment getting some kind of payment - that is the change.

At the moment the 'Second income threshold' is £50,000 - meaning the family element starts to taper away at £50,000. As far as I can see the Second income threshold is being reduced to £40,000. Which means the basic family element will now start to taper down at £40,000.

I doubt it.

I believe the maximum is £40k rather than £5k so taper will begin around £32k upto the max of £40k

Page 41...

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/documents/digitalasset/dg_188581.pdf

''The government will reduce tax credit eligibility for families with income above £40,000 from April 2011 and make further changes to this threshold in 2012-2013''

This to me means no eligibility for those earning over £40k.

KxMx

5?? I supported it being cut to 7 but that seems very harsh.