Child tax credit limit reduced to £26,000

pompeyrich

Thanks for the clarification Zag, must sya the "the family element of the Child Tax Credit will be withdrawn immediately after the child element" wouldn't have made any sense to me and tbh still doesn't. Have got the letter staying it will stop.

I keep a fairly close eye on politics but the letter was the 1st i knew about it. Contrast that to the furore that followed the announcement of CB removal from families with one 40% tax payer.

lovetowinacar

To the OP - there are ways of saving the £10 a week on the money saving boards some things you may consider to save outgoings are:

1. Check how much you are paying for electricity and gas and see if you can obtain this cheaper elsewhere.

2. When car and home insurance become due check the money comparison sites for savings - this can run into hundreds each year.

3. Look at changing some of the branded food items for store own brand items.

4. Shop around for everything you buy.

5. Check what mortgage rate you are paying - could this be reduced.

6. Sell unwanted items on ebay or at a local car boot.

7. Use coupons to reduce supermarket shopping.

8. Loans and credit cards - check you are getting the best deal available.

These are just some of the things I have done for the last few years and it really does help make my money go further.

Good luck with the savings - many people will face a reduction in child tax credit or other sources of income and these can be alleviated by careful budgeting.

biscuit1_2

Not what you would call crystal clear. Pretty much wrapped in gobbledegook and well hidden so as not to cause to many waves till it actually happens and then get told ..well you knew about it last june.Rubbish

Sixer

biscuit1 wrote: »

Not what you would call crystal clear. Pretty much wrapped in gobbledegook and well hidden so as not to cause to many waves till it actually happens and then get told ..well you knew about it last june.Rubbish

It was exceedingly widely reported. Here's a BBC link from the time which explains it all perfectly clearly:

http://www.bbc.co.uk/news/10416333

MissMoneypenny

Sixer wrote: »

It was exceedingly widely reported. Here's a BBC link from the time which explains it all perfectly clearly:

http://www.bbc.co.uk/news/10416333

Perhaps people only see what they want to see?

I was talking to someone who works for one of these places that places jobseekers into free (for the employer) work. She said she was delighted that all the welfare changes were coming in and was pleased at how strict Universal Credit is going to be. Heavily pregnant with her first child and with both her and her husband on low wages, she didn't realise that Universal Credit would also replace Child Tax Credits and her Working Tax Credits claim and that the "strict" Universal Credit would affect her family too.

SMI might catch some people out too. The last government and this government, have made it clear the the 13 week and up to 200K mortgage is only temporary from the normal 39 week and 100k, yet how many people think this is a permanent change?

[Deleted User]

MissMoneypenny wrote: »

Perhaps people only see what they want to see?

I was talking to someone who works for one of these places that places jobseekers into free (for the employer) work. She said she was delighted that all the welfare changes were coming in and was pleased at how strict Universal Credit is going to be. Heavily pregnant with her first child and with both her and her husband on low wages, she didn't realise that Universal Credit would also replace Child Tax Credits and her Working Tax Credits claim and that the "strict" Universal Credit would affect her family too.

SMI might catch some people out too. The last government and this government, have made it clear the the 13 week and up to 200K mortgage is only temporary from the normal 39 week and 100k, yet:cool: how many people think this is a permanent change?

I also think that couples are going to have to work 30 hours under Universal Credit. I was at a Conference in Jan doing a session on RTI which is the new PAYE system HMRC are bringing in that is geared towards Universal Credit. Employers are going to have to report payments made to employees as and when they make them rather than just annually. HMRC wanted employers to state how many hours each payment was for, when we previously argued the difficulties this brings we will now have to state which of the following 4 bands the payment is: less than 16 hours, 16-30 hours, above 37 hours or other (for bonus, commission etc) so where does 24 hours come into that?

MissMoneypenny

Deleted_User wrote: »

I also think that couples are going to have to work 30 hours under Universal Credit.

Deleted_User wrote: »

the following 4 bands the payment is: less than 16 hours, 16-30 hours, above 37 hours or other (for bonus, commission etc) so where does 24 hours come into that?

Interesting. From what I have read, one of the couple will have to work 35 hours under UC and if they don't earn enough, the other parent will have to work too once their child reaches age 1. In other words, if the main worker in the family doesn't earn enough money, the stay at home parent will have the same new work conditions put on them as a single parent who claims. When the youngest reaches 13, both parents will have to work 35 hours, just as a single parent will have to. UC is being based more on how much is earned, rather than the number of hours worked.

The government want to stop couples who are using state welfare to fund a stay at home parent, when the worker in the family doesn't earn enough to support their children. Also to stop single parents who don't work or don't work enough hours and rely too heavily on the welfare state to support their children.

It seems that under Universal Credit, those wanting this welfare payment will either be workers or carers. The single parent is a carer and in a couple with children, one parent is a carer and one is a worker. Working conditons will be put on carers and workers depending on what they earn and the age of their youngest child. From what you have said, the government seem to be looking at; up to 16; 16 to 30; over 37 hours.

Edited to say: in light of what JoanneNotts has just posted, if I had to guess on the hours for a 'carer' parent claiming Universal Credits, I would say:-
Youngest child over age 1 = 16 hours work.
Youngest child between 5 and 12 = 30 hours work.
Youngest child age 13 = 37 hours work.
Although in the case of parent couples claiming, the hours for the 'carer' parent would be based on the wage of the 'worker' parent and number of children they have.

drc

They need to cut your tax credits so they can pay more tax credits to the long term workless households with lots of children whose benefits will be going up by circa 5% in April.

Soapn

Firefox1975 wrote: »

Please consider carefuly before your daughter applies to study "dance" at university.

Granted - it is years down the line but alot of students studied similar non academic subjects and are now struggling terribly looking for work.

(Not provoking an argument - just offering advice!:))

I know someone's daughter who is at "uni" doing dance and is up to £24,000 in debt. She's 19 and her mum thinks nothing of spending £300 on head shots for her. Astounding.

Having said that, her mum and dad both work long hours to pay for stuff for her.

biscuit1_2

http://www.bbc.co.uk/news/10416333

Sorry ..Nope not crystal clear at no point does it state that anyone earning over £26,000 will result in the complete removal of payments ..it happily states the drop from £50000 to £40000 in 2011 no mention of £26000 anywhere ..There will be more than just a few people a tad shocked at this especially when they realise they are losing there working tax and child benefit ..IF...you earn over £26000 with just the one child ...

THATS £120 A MONTH by the way

Had me moan cant afford to lose £120..wife work's for peacocks could be losing her job this week so feeling a tad grumpy just now and i am annoyed i missed this as i did know of the drop to £40,000 but was totally unaware of the £26000 drop ..bad bad timing