Emergency Budget: tax credit cuts for millions

Mr_K

mitchaa wrote: »

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

I understand it as £40k is the new maximum. Taper will therefore start much earlier.

I thought I heard him say the taper would begin at £40k, i e. your payments will start to reduce above this.

xnatalie81x

mitchaa wrote: »

Baby element gone.
SMG limited to 1st child only. - what is SMG???
Lower £40k threshold.
Mothers to seek work when child goes to school? (Possible Income Support limit to age 5?)
Child benefit frozen for 3yrs
Healthy eating grant gone. - is that the health in pregnancy grant?and if so, is it immediate?Am 18 weeks pregnant and would be due to get it in the next coupl emths i believe??
Housing benefit capped at maximum £400pw
VAT upto 20%

All good so far.

Just a couple of questions if someone could be kind enough

sinstar

Government will reduce tax credit eligibility for families with household income above £40,000 from April 2011

REDUCE, not END, page 34.

ps. thanks for that link I have been waiting forever for what I think is the same document to load from the Treasury website.

[Deleted User]

2.42 From April 2011, the level of in-year rises of income that will be
disregarded from calculations of tax credit entitlement will decrease from
£25,000 to £10,000 and from April 2013, this will be decreased further to
£5,000. (43)

[Deleted User]

xnatalie81x wrote: »

Just a couple of questions if someone could be kind enough

1.105 From April 2011 the Government will restrict eligibility to the
Sure Start Maternity Grant to the first child only and abolish the
Health in Pregnancy Grant from January 2011. Mothers that are already
pregnant should not be affected.

[Deleted User]

Ohhh I like this one re Housing Benefit

2.55 From April 2011, Housing Benefit claimants with a disability and a nonresident
carer will be entitled to funding for an extra bedroom. (34)

sinstar

_shel wrote: »

2.42 From April 2011, the level of in-year rises of income that will be
disregarded from calculations of tax credit entitlement will decrease from
£25,000 to £10,000 and from April 2013, this will be decreased further to
£5,000. (43)

Oh dear, oh dear. HMRC need to be more proactive in educating customers about the income disregard then or we will see a huge increase in overpayments. The low income disregard is what caused so many problems when tax credits were introduced.

asandwhen

I work in the public sector so will be getting a pay freeze

I have a child and have a family income of £48k so will loose child tax credits.

I have a baby on the way so will lose out on the extra money in the first year.

Im alive so will lose out with VAT increase.

BUT..... I think I am happy with this budget and beleive this will get our coutry back on track. :j

mitchaa

xnatalie81x wrote: »

Just a couple of questions if someone could be kind enough

Surestart maternity grant.

£500 each time you have a child. This will now only be payable once.

£190 Healthy eating grant, from January 2011.

mitchaa

sinstar wrote: »

REDUCE, not END, page 34.

ps. thanks for that link I have been waiting forever for what I think is the same document to load from the Treasury website.

I suppose it's how you read it.

Reduce eligibility. I.e you're either eligible or your not.

If it is as you say, that is a half hearted attempt then. You can still get some form of TC payment upto around £50k then:eek: