What do the new changes to tax credits mean?

keaton

I understand they are frozen for 4 years and that it will be limited to 2 children for new claimenrs after 2017, but what about the other changes? Something about them being withdrawn at a lower or higher rate as a person earns?

Miroslav

I think it said twins/triplets only count as one?

Pollycat

rogerblack wrote: »

Not quite - reading closely the statement - it is for children born after 2017.
So, if you have 4 children - born before 2017, then you may still make a claim.

This does seem rather unfair on women who happen to have triplets.
Should they get a selective reduction to two children, or put one into care?

I may be wrong (I was busy cooking lunch) but I thought I heard a mention of multiple births so perhaps Osborne said these would be exempt.

jonliv

I am sure something was said about making provision for multiple births ....

tazwhoever

thanks rogerblack, I thought it would be unfair to cut CTC for parents who have more than two children currently.

rogerblack

jonliv wrote: »

I am sure something was said about making provision for multiple births ....

Doh.

It was cunningly hidden in the subtle language There will be provisions for exceptional cases including multiple births.'


Apologies, I was in a blind rage after reading the bit on ESA, and its probable consequences.

bloolagoon

They are being lowered BlondeBUbbles just posted the new figures

jackieblack

keaton wrote: »

but what about the other changes? Something about them being withdrawn at a lower or higher rate as a person earns?

Do you mean this (taken from BBC News website) "Income threshold for tax credits to be reduced from £6,420 to £3,850"
I didn't understand that bit either

cscz

the income threshold has been reduced to £3850 and the withdrawal rate has been increased to 48% or 48 pence for every £1 earned over the threshold. for my own award which is 2 adults (1 disabled worker) and 2 children it means a difference of £2583 per year less which is equivalent to around £49 a week.

SnooksNJ

rogerblack wrote: »

Not quite - reading closely the statement - it is for children born after 2017.
So, if you have 4 children - born before 2017, then you may still make a claim.

This does seem rather unfair on women who happen to have triplets.
Should they get a selective reduction to two children, or put one into care?

It seems kind of extreme to abort fetuses because you won't get the maximum benefits for them.

henlans

http://www.telegraph.co.uk/finance/personalfinance/how-budget-affect-me/11721785/Budget-2015-what-to-expect-for-income-tax-and-the-personal-allowance.html


You will be -£2056.20 worse off