June Budget – Child benefits and tax credits
The Chancellor introduced a number of changes to child benefits and tax credits.
The child benefit rates are to be frozen for three years until April 2014.
Child and Working Tax Credit
The following are the main changes which will apply from April 2011:
- Reduced eligibility for families with household income above £40,000.
- Both withdrawal rates to increase to 41%.
- Reduction in the income disregard from £25,000 to £10,000.
- The baby element of the Child Tax Credit will be removed.
- The Child Tax Credit will increase by £150 above the Consumer Price Index.
The following are the main changes which will apply from April 2012:
- The age 50+ element of the tax credits are to be withdrawn.
- The facility to register and claim tax credits from an earlier date is to be reduced from the present 93 days (3 months) to just one month.