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  • FIRST POST
    • MSE Guy
    • By MSE Guy 22nd Jun 10, 11:01 AM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    Emergency Budget: tax credit cuts for millions
    • #1
    • 22nd Jun 10, 11:01 AM
    Emergency Budget: tax credit cuts for millions 22nd Jun 10 at 11:01 AM
    This is the discussion thread for the following MSE News Story:


    Read the full story:

    Last edited by MSE Guy; 22-06-2010 at 12:09 PM.
Page 1
  • dmg24
    • #2
    • 22nd Jun 10, 12:18 PM
    • #2
    • 22nd Jun 10, 12:18 PM
    Can we have some figures to back up the statement please? It is difficult to quantify millions. Thank you.
  • mitchaa
    • #3
    • 22nd Jun 10, 12:18 PM
    • #3
    • 22nd Jun 10, 12:18 PM
    Baby element gone.
    SMG limited to 1st child only.
    Lower 40k threshold.
    Mothers to seek work when child goes to school? (Possible Income Support limit to age 5?)
    Child benefit frozen for 3yrs
    Healthy eating grant gone.
    Housing benefit capped at maximum 400pw
    VAT upto 20%

    All good so far.

  • sinstar
    • #4
    • 22nd Jun 10, 12:24 PM
    • #4
    • 22nd Jun 10, 12:24 PM
    The wording of that makes it seem a lot scarier than I think it is.

    The basic family element of child tax credits is worth 10.50 per week. Everyone with a child in their household would get this 10.50 a week as long as their income was below approx. 50,000. That threshold has now changed to 40,000. If your household income is below 40,000 you won't notice any change to your tax credits caused by this particular measure.

    As far as I can see the baby element of tax credits is being withdrawn. This is also currently worth 10.50 per week. At the moment it means that families with a child under the age of one get an extra 10.50 p/w (depending on their income) while they have a child under the age of one. So if you have a child under one, this will reduce your tax credits, but only to the amount they would have reduced to anyway, when your child turned one.
    • Emmamumof2
    • By Emmamumof2 22nd Jun 10, 12:28 PM
    • 1,160 Posts
    • 2,562 Thanks
    Emmamumof2
    • #5
    • 22nd Jun 10, 12:28 PM
    • #5
    • 22nd Jun 10, 12:28 PM
    But he has just said "We will provide additional support for families in poverty. I will increase the child element of child tax credits."
  • sinstar
    • #6
    • 22nd Jun 10, 12:29 PM
    • #6
    • 22nd Jun 10, 12:29 PM
    An increase of 150 per year on the child element... so removing the baby element reduces maximum entitlement by 547.50 for one year ... but for each child you have your maximum entitlement will increase by 150 per year for the foreseeable future
  • mitchaa
    • #7
    • 22nd Jun 10, 12:29 PM
    • #7
    • 22nd Jun 10, 12:29 PM
    The wording of that makes it seem a lot scarier than I think it is.

    The basic family element of child tax credits is worth 10.50 per week. Everyone with a child in their household would get this 10.50 a week as long as their income was below approx. 50,000. That threshold has now changed to 40,000. If your household income is below 40,000 you won't notice any change to your tax credits caused by this particular measure.

    As far as I can see the baby element of tax credits is being withdrawn. This is also currently worth 10.50 per week. At the moment it means that families with a child under the age of one get an extra 10.50 p/w (depending on their income) while they have a child under the age of one. So if you have a child under one, this will reduce your tax credits, but only to the amount they would have reduced to anyway, when your child turned one.
    Originally posted by sinstar
    I think you have misunderstood. 40k is the new maximum limit. It will therefore start tapering off much earlier. So for example you may have been earning 35k just now and getting the basic 545pa but now it will be less as it is being tapered much earlier. Out of that 545, you may get 300 of it or so.

    40k will be the limit where the award is 0 in other words. 39k may get 50, 38k 150 and so on and on

    Baby element has gone completely so 545 down straight away. (For 1 yr)

  • sinstar
    • #8
    • 22nd Jun 10, 12:31 PM
    • #8
    • 22nd Jun 10, 12:31 PM
    I thought 40k is the new taper point? For example at the moment the family element only tapers to 0 when your income is approx. 58k as far as I am aware.
  • Penny-Pincher!!
    • #9
    • 22nd Jun 10, 12:31 PM
    • #9
    • 22nd Jun 10, 12:31 PM
    All DLA claimants new and exisiting from 2013 will have medicals but shorter form filling.

    All sounds fair so far.

    PP
    xx
    To repeat what others have said, requires education, to challenge it,
    requires brains!

    FEB GC/DIESEL 200/4 WEEKS
    • KxMx
    • By KxMx 22nd Jun 10, 12:34 PM
    • 7,582 Posts
    • 11,083 Thanks
    KxMx
    I agree it does seem fair. All other medical benefits include a medical exam so should DLA should to. And realistically they might be out of power then!
    • only_mee
    • By only_mee 22nd Jun 10, 12:34 PM
    • 2,302 Posts
    • 2,518 Thanks
    only_mee
    All DLA claimants new and exisiting from 2013 will have medicals but shorter form filling.

    All sounds fair so far.

    PP
    xx
    Originally posted by Penny-Pincher!!
    As long as the shambles we read about that is ATOS isn't doing them
    • Emmamumof2
    • By Emmamumof2 22nd Jun 10, 12:34 PM
    • 1,160 Posts
    • 2,562 Thanks
    Emmamumof2
    It all sounds fair enough - I dont think any major shocks there - I was shocked that he says some families received 104000 in housing benefit pa which is why they are capping!
    • Simac
    • By Simac 22nd Jun 10, 12:35 PM
    • 247 Posts
    • 888 Thanks
    Simac
    I missed the beginning of the speech, did anybody hear when the threshold is being reduced to 40,000? Is it immediate or from next April?
    • KxMx
    • By KxMx 22nd Jun 10, 12:36 PM
    • 7,582 Posts
    • 11,083 Thanks
    KxMx
    Unsure how the link between Consumer Price Index and benefit rises works though. Only a small IB rise last time but it all helps.
  • Penny-Pincher!!
    As long as the shambles we read about that is ATOS isn't doing them
    Originally posted by only_mee
    I agree. I do honestly think though that with these medicals that qualified medical profesionals (sp) should only preform them, but thats my personal view anyway.

    PP
    xx
    To repeat what others have said, requires education, to challenge it,
    requires brains!

    FEB GC/DIESEL 200/4 WEEKS
  • dmg24
    I agree it does seem fair. All other medical benefits include a medical exam so should DLA should to. And realistically they might be out of power then!
    Originally posted by KxMx
    Not necessarily - not all IB claimants have medicals, and equally many DLA claimants already have them. It does seem rather a fruitless measure.
  • DaiJoA
    I missed the beginning of the speech, did anybody hear when the threshold is being reduced to 40,000? Is it immediate or from next April?
    Originally posted by Simac
    I stupidly missed the news completely so I'm only getting my info from here now and news sites, and haven't come across an answer so far, BUT I know they are scrapping the child trust funds for new babies from August so this may be the start date for many of the other changes too.
  • bat women
    budget
    child benefit frozen its a bit harse
  • Matty23
    What is excatly the full story on IB?, Are they definatly stopping it or tranferring it?, Will it save money aswell?, I did'nt see nothing about it as I was in loo for some part of it!.
  • mitchaa
    I thought 40k is the new taper point? For example at the moment the family element only tapers to 0 when your income is approx. 58k as far as I am aware.
    Originally posted by sinstar
    No, as that would mean payments for those earning high 40k.

    I understand it as 40k is the new maximum. Taper will therefore start much earlier.

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