Over 200,000 families lose entire working tax credit support new HMRC figures show

The Government slammed by Child Poverty Action Group


Published by Max Salsbury for 24dash.com in Central Government and also in Communities

 Over 200,000 families lose entire working tax credit support new HMRC figures show

The Government was today slammed by Child Poverty Action Group as new figures published by HMRC show that over 200,000 families have lost their entire working tax credit support, worth £3,870, from 6 April 2012.

The Chief Executive of Child Poverty Action Group Alison Garnham said: “This is an absolute calamity that plunges nearly half a million children deep below the poverty line. Many of these parents will now have less money in work than if they just claimed benefits. It runs directly against the consensus on the importance of making work pay and the government’s duties on child poverty.

“The Chancellor should have announced at the Budget he would keep these working families afloat and in work, but they were cut loose whilst taxes for corporations and the super-rich were cut instead.”

New figures placed in the House of Commons library by HMRC, based on the latest quarterly statistics, show that 203,000 families (with 449,000 children) will lose their working tax credits due to one of the Coalition’s cuts, which changes the hours rule.

On 6 April 2012, the rules for Working Tax Credit for couples with children changed.

In a press release, Child Poverty Action Group wrote: “Currently, couples have to work at least 16 hours a week between both parents. From April they will have to increase their working hours to at least 24 hours, or they will lose their whole entitlement to Working Tax Credit, worth £3,870 a year. Although a minority of these families may be able to find extra hours in the coming weeks and months, for now their working tax credit claim has been terminated and all entitlement lost.



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