New Child Tax credit changes come into effect today - possibly affecting millions of low-income parents who are planning a third child.(via The Express)
Under the new rules, babies born into families that already have two children will not get any extra help through tax credits or universal credit. The Child Tax Credit changes also mean that there will not be an extra £545 a year for newborn first children. It is thought the changes will eventually affect four million low-income families in a bid to reduce Government spending by £5billion a year.
Child Tax Credit - which is worth up to £2,780 per child per year - will only be paid for the first two children in any family.
Historically there has not been a limit on how many children a parent can claim for. If your children were born before today, credits for three or more children will still be applicable.
Four other cuts introduced this month may also affect families across the UK. However, exclusions apply and it's worth checking to see how you may be personally affected
...1: £30-a-week disability benefit cuts
From today, people claiming the disability benefit called Employment and Support Allowance (ESA) will be getting £29.05 less each week if they are deemed fit for Work Related Activity (WRAG). This means instead of £102.15 per week, this particular group of people will now recieve £73.10 per week - which is the same as jobseekers’ allowance.2: The Family element
An extra payment in Child Tax Credit called the “family element”, worth £545 a year, is being shut down. 3: Changes for people who have been widowed
Three different benefits are being replaced with one new Bereavement Support Payment. It’s worth £3,500, plus £350 a month for 18 months, for claimants with dependent children (£2,500 plus £100 a month for other claimants).4: Young people and housing benefit
Already in force on 1st April, Jobseekers aged 18 to 21 will no longer be able to get Housing Benefit, worth varying amounts and always paid directly to the landlord.Tax Credits - gov.ukTax Credit Calculator - gov.uk