Changes to tax credits for babies under one?

ClaireLR

Apparently they're stopping the extra payment from April that you get for babies under the age of one:

Changes in your payments

The most common reasons why your payments may have gone down or stopped are:

• a child reaches 16, but you haven't told the Tax Credit Office that they're staying in full-time education or approved training
• your award notice shows you've been overpaid
• you've changed your bank, building society or Post Office® card account details and haven't told the Tax Credit Office
• you've changed address and haven't told the Tax Credit Office
• you've not provided the Tax Credit Office with any bank account details
• you haven't renewed your tax credits claim
• your income will be too high from 6 April 2011 to get tax credits
• you're getting the extra payment for having a baby under the age of one, which is stopping from 6 April 2011
• your income has gone up by more than £25,000, and so your tax credit payments have gone down

Taken from the HMRC website.

Does anyone know why this has happened, is it another of the cuts they're making?

ajaney

Baby element to stop - It was announced in the budget & is a cost-cutting measure.

Families with incomes over £40,000 will no longer receive CTC from April

HTH - theres more info in this article from the Guardian http://www.guardian.co.uk/uk/2010/jun/22/2010-budget-child-tax-credits-cut

ClaireLR

ajaney wrote: »

Baby element to stop - It was announced in the budget & is a cost-cutting measure.

Families with incomes over £40,000 will no longer receive CTC from April

HTH - theres more info in this article from the Guardian http://www.guardian.co.uk/uk/2010/jun/22/2010-budget-child-tax-credits-cut

Thanks for the link, really helpful I never could figure out why you got more for babies under one anyway, they don't cost anymore than kids over one!