Families in Bradford face tax credit hit (From Bradford Telegraph and Argus)
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Families in Bradford face tax credit hit
4:15pm Tuesday 14th February 2012 in News
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.
Comments(12)
mad matt
says...
4:42pm Tue 14 Feb 12
MisterBD
says...
4:57pm Tue 14 Feb 12
mad matt wrote:exactly ! well said and they are only interested in helping out their millionaire friends- mo matter what party they are from
The government couldn't give a monkey's - most of the cabinet are millionairs anyway - they're alright Jack!
Outraged Citizen
says...
7:27pm Tue 14 Feb 12
Thee Voice of Reason
says...
10:49pm Tue 14 Feb 12
Outraged Citizen
says...
11:34pm Tue 14 Feb 12
Thee Voice of Reason wrote:Yes but don't forget that the State does owe all of us a living.
Seems there is little benefit in working when you factoring child care costs so you can go to work. So why bother at least these people are paying into the system unlike many others who are just on the take.
Outraged Citizen
says...
11:36pm Tue 14 Feb 12
Avro wrote:Plus, who wants to work extra hours? We all want to work less, surely.
What are these families supposed to do in a time when the majority of employers have put a freeze on extra hours, and if anything are cutting hours!
£75 a week is a lot to loose by any standard, and its not as though these people are not working.
This Government will end up making people destitute!
Outraged Citizen
says...
11:38pm Tue 14 Feb 12
MisterBD wrote:True. The Labour Party seem to have abandoned their Working Class roots and are nowhere near radical enough. We need a proper Marxist party. As for the Tories, not worth mentioning!
mad matt wrote:exactly ! well said and they are only interested in helping out their millionaire friends- mo matter what party they are from
The government couldn't give a monkey's - most of the cabinet are millionairs anyway - they're alright Jack!
Outraged Citizen
says...
11:39pm Tue 14 Feb 12
bigo93
says...
1:15am Wed 15 Feb 12
As I wrote, I am currently still arguing with the HMRC from a job I had 2 years ago! First job and was being paid under £13k so applied for tax credits. Now 2 years later HMRC are demanding I repay it all back on the grounds I didnt renew???
This was the first time I ever applied for tax credits and I applied in May, after the start of the tax year, so what is there to renew?
With the government trying to scrap away as much cash from the people, applying for tax credits have caused me more stress than they are worth!
angry bradfordian
says...
6:42am Wed 15 Feb 12
Gerry Sutcliffe should realise he's 'increasing out of touch' with the silent majority of tax payers in this country that pay his salary.
Outraged Citizen
says...
1:46pm Thu 16 Feb 12
angry bradfordian wrote:Is that why Cameron is giving away MILLIONS of taxpayers' money to private companies such as A4e for doing absolutely nothing?
How about making the headline 'Govenment make attempt to lower tax-payers tax bills' instead?
Gerry Sutcliffe should realise he's 'increasing out of touch' with the silent majority of tax payers in this country that pay his salary.
Avro says...
4:29pm Tue 14 Feb 12
£75 a week is a lot to loose by any standard, and its not as though these people are not working.
This Government will end up making people destitute!