Tax Credit Cuts
Second wave of Tax Credit Cuts
Coming to a home near you 6th April 2012!
5.7 million families across the UK receiving tax credits 2011
George Osbourne has been accused of abandoning Britain's poorest with cuts and freezes that will see 100,000 more children fall into poverty
Not everyone is going to lose out, some higher earners might actually win!
But there will be big losers, who will feel the pinch?
Couples with Children working part time
Up to 200,000 couples with children will lose almost £4,000 a year due to the Government’s changes to tax credits on 6th April.
Couples in part-time work who earn less than £17,700 will need to increase their hours, or lose their working tax credit, they currently qualify for WTC if between them they work 16 hours a week.
That is all going to change and couples will need to find another 8 hours work in order to continue to recieve WTC.
Yes couples with children will have to work 24 hours a week between them, not 16, in order to qualify for working tax credit!
So redundancies, rising unemployment, and failing companies and the Coalition Government introduces changes that will push low income families further into poverty unless they can increase the amount the can do!
If that doesn't sound right the Government say this change will remove the inequality between couples and lone parents by ensuring that at least one member of a couple is required to work 16 hours per week like lone parents.
There are some important exceptions to the 24 hours rule.
- the partner who is working at least 16 hours per week is eligible for the disabled worker element of WTC, or is aged 60 or over; or
- a partner works at least 16 hours a week and the other partner recieves an illness or disability related penefit,or
- a partner works is and the other partner is in hospital, or in prison.
Older workers returning to work
will also be losers as the "50-plus element" will be abolished, even for those who are already receiving it.
Further information on Tax Credits
