How can my CTC go down when nursery fees have gone up?!?!

gerturdeanna

I really don't understand the process here. I called CTC last week to advise that my nursery fees had gone up by £20 per week. £10 per child. Our wages, working hours etc haven't changed yet payments have gone down from £719 to £600!!!! All my bills have gone up, we've not had a payrise yet now we have to find another £120 to cover the shortfall from the CTC!! WHY?!?!?!?

[Deleted User]

Is this your first payment in the new tax year?

Have you received any payments outwith your normal schedule?

gerturdeanna

I recieved an extra £100 last week. Called Monday, extra put in back on Thurs, recieved letter today saying payment next thursday £606 and the £600 every 4 weeks thereafter.

[Deleted User]

It seems you have received a one off payment which would slightly lower your future payments. And also it seems you annual entitlement has reduced too if this is your first 4 weekly payment of the year.
If you household income was higher in 07/08 than it was in 06/07 this will explain why your payments have reduced.
Tax Credits are based on your previous year income and when we passed 6th April we have just gone in to the new tax year and your award would have been recalculated.
When you complete you annual renewal your award will be recalculated again, your payments may increase/decrease based on the income you declare.

mitchaa

Your £719 entitlement is from earnings of TY 06/07

Your new £600 entitlement is from TY 07/08

We are now in TY 08/09

I suspect your earnings will have increased between 06/07 and 07/08?

Any increases in salary this year will not have an effect until next years claim.

Not being funny, but you should be greatful that you get help with childcare. When i put my child into childcare, ill need to fork out for it out of my own pocket. No help from the government at all.

mummytofour

Not being funny, but you should be greatful that you get help with childcare. When i put my child into childcare, ill need to fork out for it out of my own pocket. No help from the government at all.

Tax credits are based on household income so your household income must be too great to receive help with childcare or you work less than 16 hrs a week, the system does suck big style but the supposed idea is that the help is there for those that NEED it and it would seem you are deemed as not needing it.. Like most things in life there is often a way round it for example many people work round their partners or decided for one reason or another it is better not to work at all.