dla higher rate care = increase in entitlement to child tax credits?

passko

Hi, my daughter has recently been awarded the higher rate of DLA (care component). I have been told that it will mean an increase in our child tax credit entitlement & have informed tax credits. However they have not given me any idea of what it could potentially mean for our finances? I am working fulltime as a nurse (pay freeze!!) but am on a tight budget as my husband is a fulltime mature student. Would really appreciate the advice so I can budget for the future.
Thanks.

kingfisherblue

For 2010, the annual amounts are:

£2715 extra for the disabled child element
£1095 extra for the severely disabled child element

So as your daughter is on HRC, it will be the two amounts added together. Divide by 52 for the weekly amount.

passko

Hi kingfisherblue - thanks for the quick reply. That's an awful lot more than I was expecting! Do you know whether that figure could be adjusted due to my income? It seems that there are always so many entitlements put on my yearly review - but then they always get cut due to my income (which really isn't a fortune I assure you!!)

krisskross

My friend has been told there is no increase in her tax credits for her disabled daughter as her husband earns too much. However I have no idea where the cut off is.

kingfisherblue

passko wrote: »

Hi kingfisherblue - thanks for the quick reply. That's an awful lot more than I was expecting! Do you know whether that figure could be adjusted due to my income? It seems that there are always so many entitlements put on my yearly review - but then they always get cut due to my income (which really isn't a fortune I assure you!!)

I don't work as I'm my son's carer, so to be honest, I didn't think of reductions because of earnings. This is where I obtained the information:

http://www.hmrc.gov.uk/rates/taxcredits.htm

Look at page 6 of this pdf - it doesn't mention a reduction due to earnings:

http://www.hmrc.gov.uk/leaflets/wtc2.pdf

It might be worth giving the tax credit helpline a ring - I've always found them to be helpful.

Also, when your husband is no longer a full time student, if he is caring for your daughter for 35 hours or more per week, he may be able to claim Carer's Allowance (there are other criteria, but it's worth checking). part time mature students can claim CA - I did my degree over five years as I knew I wouldn't be able to manage it full time, and I still received my CA. I'm assuming that your husband will be hoping to find full time work, though, so it might not be relevant.

passko

Thanks for that, will give them a call in a couple of days if i dont hear anything soon. Apparently the CTC database was updated with the new info about the DLA on Monday, so hopefully shouldn't have to wait too long to find out anyway.