Bradford families face tax credit hit (From Bradford Telegraph and Argus)

Bradford families face tax credit hit

11:00pm Monday 13th February 2012 in News By James Rush

More than 4,500 couples with children in part-time work in Bradford could lose about £4,000 a year when changes to tax credit rules come into force, it has emerged.

Government figures released in Parliament show 4,575 couples with children who work part-time could lose out in the district.

Bradford South MP Gerry Sutcliffe has urged the Government to reconsider the change, first proposed in the comprehensive spending review in October 2010, which means households home to more than 11,700 children in Bradford would lose all of their working tax credits unless they increase their working hours.

But the Treasury has said the figures ignore a range of other measures being taken to help working families.

The change, due to come into force from April, would mean couples with children earning less than £17,700 will need to increase the number of hours they work from a minimum of 16 to 24 per week or they will lose their working tax credit of £3,870.

Mr Sutcliffe said: “This is a deeply unfair change from a Government that is increasingly out of touch with parents feeling the squeeze and struggling to juggle work and family life.

“Raising taxes and cutting spending too far and too fast has seen unemployment rise and the economy go into reverse, and many employers are cutting people’s hours. In this climate, very few people in part-time work will be able to increase their hours by up to 50 per cent at the moment.

“And for a couple with children losing around £4,000 a year, or £75 a week, from this change could mean going out to work makes no sense.”

A HMT spokesman said the Chancellor has confirmed working age benefits will go up by 5.2 per cent in April and the child element of the Child Tax Credit will increase by inflation from April – which could mean up to £135 extra per child.

The figures released by the Government show the worst hit area would be Bradford West, where 1,815 households would be affected, home to some 4,755 children.

Mr Sutcliffe’s constituency would see 635 households – home to 1,495 children – hit, while 1,390 households would be affected in Bradford East, 525 in Keighley and 210 in Shipley.