The Conservative and Lib Dems have said they’re going to cut tax credits and restrict the child trust fund.
The new government wants to target tax credits and the child trust fund. A prudent move or one that will penalise families?
The new coalition government has wasted no time in setting out some of the changes designed to bring down the budget deficit. In their coalition agreement both the Conservatives and the Lib Dems said that they wanted to cut tax credits for higher earners. The £250 child trust fund voucher payable to parents is also likely to go for all but those families on the lowest incomes.
Working tax credit and child tax credit, understanding the basics.
The tax credit system is complicated and that's one reason why some women lose out - make sure you're not one of them.
Many women don’t currently claim tax credits because they don’t know whether or not they’re entitled to receive them and they’re worried about having to pay back money they shouldn’t have received. But tax credits can make a difference to your income, especially if you’re entitled to working tax credit when you can also claim towards the cost of child care. The government changed the rules recently so that anyone who’s been paid too much in tax credits will only have the difference between what they should have received and what they’ve been paid clawed back. Under the old system, you had to pay the lot back and make a new claim, which could mean a wait before your new claim is processed.
It costs three times more to raise a disabled child, according to a charity
Many parents with disabled children earn less and borrow more than others, according to the charity Contact a Family. It's raising awareness of the financial problems families can face.
Many parents find the extra costs involved in having a child are a bit of a shock. But imagine how you would feel if your child’s illness or medical condition meant you had to spend more while you earned less? Families with disabled children earn over 20% less than other families, receiving just over £15,000 a year. The charity Contact a Family also found that only 16% of mothers with disabled children work, compared to 61% of other mothers. Not surprisingly, many families with disabled children are in debt.
