Thursday, 1 March 2012

Cameron's broken promise on Tax Credits and Child Tax Credits

From April this year changes to Tax Credits will require couples with children to work up to eight extra hours a week. From 16 hours to 24 hours.

Over 212,000 couples with 470,000 children will be affected. If they cannot find extra work, these families will lose their whole Working Tax Credit worth £3,870.

This change will mean:
  • Many families would be better off claiming benefits than continuing in work.
  • Couples with children will lose Working Tax Credit worth £3,870 if they stay together, but not if the parents split up.
This follows on form the lowering of the Tax Credit threshold from around £40,000 to £30,000 in George Osborne's first budget which saw many households lose out on the Child Tax Credit element that partially paid a substantial amount towards nursery fee's and forced some mums to give up work.