Budget 2010 – Tax Credits
A number of changes to tax credits were announced in Budget press releases including:
- From April 2012 an increase in the child element of £4 per week for those families with children aged one or two.
- From April 2010 awards for fixed period childcare costs (such as claims of a few weeks during the school holidays) will be averaged and paid over that fixed period rather than averaged over a year. This will enable families to receive all the financial support towards their childcare costs they are entitled to receive for these periods when they need it.
- From 6 April 2011, people aged 60 and over will qualify for Working Tax Credits if they work at least 16 hours a week.
- As announced at the 2009 Pre-Budget Report and confirmed in the Budget on 24 March 2010, from 6 April 2010:
– the Child element in Child Tax Credit will increase by £20 above earnings indexation to £2300 per year. An increase of £65 per year overall
– the disabled elements of Child Tax Credit will increase by 1.5%
– the elements of the Working Tax Credit (except the childcare element) will increase by 1.5%
– maximum amounts for child care, family and baby element for Child Tax Credit, the income disregard, the first and second tax credit threshold and the withdrawal rates remain unchanged; and
– the income threshold for those on child tax credit only rises to £16,190.
- From 12 April 2010, child benefit rates and guardians allowance will increase by 1.5%.