Tax credits being stopped - is this right?

[lexis200]

Sorry, I'm sure there is a tax credit area but I couldn't find it! Please move me if you need to:)

 

I've just had a letter from the TC office to say that from April my child TC payments will stop as our income is too high. I thought the income limit was around 40k, but according to the letter it's 26k now??? This seems to be because single and joint claims are now the same limit. What gives?

 

Our income has not increased one penny in the last three years, but apparently now we are much better off (according to HMRC) and no longer need the extra bit of money we were getting.

 

Has anyone else had this, and is it really correct?

 

We weren't getting much - less than £45 a month - but it at least put fruit in the kids lunchboxes at a time when we are strapped and just skating by each month. Losing this will actually have a far greater effect than you would think:(

 

thanks,

 

Lexis x

[citizenB]

Will flag the query for you Lexis

[citizenB]

http://www.hmrc.gov.uk/taxcreditsbudget/index.htm

 

Looks like there will be some changes come April this year !

[citizenB]

• Taken from the link above ..
  
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  • you have one child, and your annual income is more than around £26,000
    
  • you have two children, and your annual income is more than around £32,200
    

[honeybee13]

Hello there.

 

I'll move this to the tax credits subforum.

 

My best, HB

[Sparklez30]

i read about this the other day for 1 child the limit will be much lower - they sneaked that change through nice and quietly!!

[lexis200]

Thanks for that chaps. Very useful linky there CB - basically they are reducing EVERYTHING, but it's ok because if you meet the new pointless limits you may get an extra hundred pounds or so. Over the year.

 

Our income is lower (by a reasonable margin) than the new higher amount, but apparently we still don't meet the criteria. This is tricky for us but it must be a nightmare for people really on the edge:(

[citizenB]

I think there are quite a few threads already worrying about things, in this forum, Lexis !

[flumps1976]

The change in income and tax credits was originally planned for approx 2 years ago but was pulled at the last minute due to the econmic climate and recession.

I foolishly thought we were still in a not so great economic climate and still facing austerity cuts left right and centre.

It hasn't been well advertised and I have taken numerous call this week at work from people enquiring what state benefits they can get to top up their incomes now that tax credits will be revoked.

[Sparklez30]

its not much notice for people - must be a nightmare

[jimjim5]

I'm in the same position, we will probably have to sell house. It's a nightmare.

[jadeybags]

It is pretty bad, I mean, since when did the cost of living go down then, so that people needed LESS to live on? I must have missed it because my shopping bill alone seems to be rising by the month!

[Sparklez30]

And by putting in a £2500 disregard on lowering wages in a year they have further cut the payouts just when you need it most

 

As I'm being made redundant but have a very young baby I can't earn enough to work and pay the childcare (especially as I have a child at school as well) so now I'm for the first time in my life going to have to claim benefits as my partner doesn't earn enough to keep our family going on his wages alone and until my bubs is at least a year old I don't have any family that can help take him in the day

 

I think therefore the 2500 disregard in drop in income is going to reduce my ctc just when I need them most leaving us heavily relying on my redundancy payout until I can get back in to work yet still there is no way I can keep making the minimum payments on my credit card and catalogue account - its going to be a very tough year! Getting through smp took all our savings!

 

Childcare costs are too high for young babies - oh and let's not forget that because the government cut funding my schools after school club has closed too

[jadeybags]

It's worrying where it's all leading isn't it. I notice the government seem to bury their heads about it all, simply stating that it's what's needed, but where does that leave people?

We all know that we get used to what we have. So I can sit here on less than 20k a year gross, with 2 young teens & paying 500 quid incl council tax out of that per month, saying I would love to have 25k a year, but I spend what I can afford out of my income, the same as someone with over 5k more a year would have done in their circumstances. So to suddenly be told it's all going down, well, I just wonder where it's going to lead....

[lexis200]

It is pretty bad, I mean, since when did the cost of living go down then, so that people needed LESS to live on? I must have missed it because my shopping bill alone seems to be rising by the month!

 

This is spot on! Petrol, food, school trips etc, everything is rising fast, and yet apparently we are now in less need of a hand than we were. I would really really love for the people who make this insane decisions about what people need to live on to actually live a real person's life for a few weeks. £45ish may be a pittance to them, but to me it's fruit and veg for my kids, or a hand towards the petrol I use getting them to school every day (because if I took public transport it would cost me more than driving!!!).

 

Like I said, it's a problem for us simply because it will be even tighter each month. For people like Jimjim it's inexcusable that they should be put in that situation, and with only a couple of months notice to boot.

[Alastrum]

I have just started my own thread on this, it seems many people are being put in the same boat. In my case, WTC is currently my ONLY income, and without it I'm royally ******! At the rate things are going, this country will soon start seeing the riots and protests we saw in Greece and Spain....