Wednesday, 23 June 2010

We're all in this together

OK -WARNING. The following comes from the Daily Mail. I know! Filth, vitiriol and a worrying obsession with working mothers and women's weight. BUT. Just read it. If they are finding fault with Gideon's budget that we know we are in trouble...

"At present, all families with a combined income of up to £58,000 receive varying amounts of child tax credit.
From next year, only those earning up to £41,329 will receive this benefit.
But detailed figures hidden away in Budget documents show that from 2012, those with joint incomes worth more than £23,275 will lose their tax credits. Treasury sources admitted that 5.7million families will not be able to claim a penny of the credit from 2012, leaving just 1.3million of the country’s poorest households benefiting from the payment.
Nicola Roberts, of accountants Deloitte says: ‘This is going to be a massive shock for all middle income families.
‘A cliff edge has been created, and they will be amazed to see their credits taken away so quickly.
‘The amount you can earn before you lose all tax credits has more than halved.’
At present, child tax credit is made up of a family element worth up to £545 a year, and a child element of up to £2,300.
On top of this, those who have a baby get an extra £545 credit in the first year.

The Chancellor announced yesterday that from next April, the rate at which the child element would be taken away would increased to 41p for every £1.
And those earning above £40,000 would start to have their family element removed at a much quicker rate until they lose everything at £41,329.
In a move not announced by the Chancellor but buried in the Budget documents, from 2012 this £40,000 income limit will be withdrawn. It means that families with one child would receive no tax credits once they earn above £23,275."

So two people scraping barely over the minimum wage with one child will get a big, fat zeo nothing. Thanks Gideon, how many kids have you got again? Oh, but of course. You have a Trust Fund.

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