Have the government done away with child tax credits?!?

[Pop24]

Had a nightmare day trying to apply for universal credit which has just replaced what would have been child tax credit in our area. We have savings of more than 16,000 (hard earned and saved house deposit!) but our household income is low. Am I right in thinking that child tax wasn't dependant on savings just income?? Yet You can't claim UC with savings of more than 16k. So, my query is, does this effectively mean ctc no longer exists? And how is that fair when people in some areas would still qualify for it? Are we really being penalised because we happen to live where we do when if we lived in the county next door we would still be able to claim child tax credits. So frustrated and confused. And advise much appreciated!

I believe that both parents will be expected to either work or be seeking work under UC, yes. When you complete your application for UC, you have to accept your 'commitments', the main one being that you will do all you can to seek and stay in employment so It does seem that they are pushing away from subsidising one parent to stay at home for years. I think there is some provision under UC for one parent to stay home if kids are under 5 though, but of course it's unclear under the new system. But this is another thing I don't get, for 2 parents to be working full time or even one full one part time gov then has to subsidise childcare costs?! Surely that is just as expensive? There's not point gov paying someone else to look after your kids just for the sake of being able to say more people are in work if it works out the same cost for them if not more?

Babyroobs nope never ever intended or marketed as a "benefit" that's Tory Spin.

Pop UC isn't about saving money, neither is the bedroom tax or re assessing disabled claimants multiple times.
They do it to appease middle class Tory voters.

Tag line from
HMRC promotional video " If you've EARNED it you CLAIM it".

Seven - So what is it if it's not a benefit then ?

If you've earned it you claim it - What about people who get tax credits who have never earnt any money ?
I can understand that slogan for working tax credits but not for child tax credits for people who have never had a job and currently don't earn anything. that is a benefit surely ??

A cynic would say that with both parents working and paying childcare, rather than one staying at home, you then have 1 more person, plus a childcare worker per so many working parents, included in the employment figures, and potentially more tax and NI being collected.

Babyroobs it was never intended as a benefit it was a way of handing some tax back to people with children.
Yes unemployed parents received it to so all children were treated equally. High income families were given tax credits to stop the them and us finger pointing.
Now since high rate tax payers receive neither TC or CB both have suddenly become a benefit.
Can you honestly say that in 2006 a couple earning £45 k and receiving tax credits would every have described themselves as in receipt of benefits?
Neither would others describe them in that way.

Well couples both earning £45k each (so 90k jointly) can still claim child benefit. Do you think they don't consider themselves receiving benefits in those circumstances?

Pop24 I am not in receipt of benefits and, yes, I read the budget. Why wouldn't you do this once a year to know what the government is doing. It is not hard. If you choose not to, you can't blame anyone else.
UC is being brought in across the country in stages to ensure it works properly and people are not left without money/massive over-payments due to IT/implementation errors. This is a sensible strategy for all new IT system roll-outs.
CTC initially paid out on family income up to £58k (in 2003, so about £80k today) and were designed by Gordon Brown to make the whole country in receipt of benefits, so we would always vote Labour.

I've known about the savings thing changing with UC for years and don't get tax credits. Tbh it's fair enough if you have 16k savings you don't need taxpayers money to support you too and I'm left wing. It should be for those that need it only

Following this thread with interest

Ok so you read the budget (what the whole budget that is about 2 inches thick??) and were aware the changes were going to be made. Well done and I really wish I had too. But most people in the country do not including, it seems, DWP staff. But as I have said multiple times, if you update the rules for entitlement then EVERYONE needs to be updated to the same rules at the same time. We are still entitled to CTC under current gov rules, but blocked from applying as our area has moved to UC. What's even worse is that in some areas that have been updated to UC you can still apply for CTC in the traditional way too, just not ours! So it is a complete postcode lottery. You can't have different tax laws in certain parts of the country and not others. I'm actually struggling to see how it's even legal. I would still argue that CTC is in general a tax rebate for having children as it is not dependent on any other wealth you may own and calculated on a sliding scale depending on earnings.

Op, something really doesn't sound right that you can't just apply for child tax credits. if you really can't get any answers from HMRC or DWP could you contact your local MP, because as you say it is grossly unfair.
A new claim for CTC ( if you do ever get to make one) will now mean you will be denied the family element which other previously got and was worth around £10 a week to families.
Also try CAB they may know what to do in this situation.

PattyPenguin - It benefits people in the long run to get back to work soon. Couples where one is a sahp may find that if the one staying home tries to re-enter the workforce 5 or 10 years down the line they will experience difficulties. They have also lost out on years of pension contributions.
The government currently pay huge amounts in tax credits to pay for childcare but clearly they think it's worth it to subsidise childcare costs for a few short years than to have people staying out of work for years on end.
Universal credit will mean that those families that cannot survive without state support will have to have both parents working if they want to receive any top ups.

*Pop^ Yes the whole budget - I care about what may be happening. Things are different in different parts of the country, it is legal. You my not get the money you wanted, but it not illegal.

We are currently receiving universal credit. My husband lost his job on Feb. We set a claim up for universal credit and they stopped our tax credits for 6 weeks only leaving us with child benefit (because this is a separate benefit). Our first universal credit was £1200 (this includes tax credits, housing benefit, job seekers allowance) with council tax being a separate claim. Our case was my husband looked for work and I didn't have to do anything because I look after the kids (under the age of 5.) He found work by the time the second payment was made.

We informed them and they called a quick interview again. Our universal credit was reduced but we still receive it. This is because we still get our child tax but instead of the housing benefit and JSA we now get working tax credits.

I've probably told you exactly what you already know @Pop24 but it's just to inform anyone else on the thread🙈

I agree Babyroobs it doesn't feel right, especially as the UC staff I've spoken too agreed that the whole thing made no sense and agreed it was unfair. I suppose we are a fairly rare case and as they have only just rolled it out they probably haven't encountered any people in our situation? They did say that for UC exemptions are made for cash over 16k if you are in the process of selling and buying a house! Which didn't satisfy me much! So you can actually have hundreds of thousands in the bank but as long as you plan to buy another home that's ok?! Yet not if you've saved for one and are yet to own a home. Who is more wealthy out of the two? This then lead me to wonder if they do sometimes make exemptions, but we haven't got to that stage yet! Will update when we find out hopefully on Monday what's going on. My next step is to ask CAB and see if they can help at all...couldn't get through phone lines on Friday so will go to my local tomorrow.

They have also lost out on years of pension contributions.

I'm pretty sure being in receipt of child benefit qualifies for National Insurance credits, so that you don't miss out on the state pension whilst looking after children (unless things have changed!)

Personally I don't think it's up to everyone to read everything on the budget. I think it's up to the people providing the benefit to let everyone know about the changes.

Every year they send out the renewal pack for tax credits; it would be very easy to pop a cover letter in with this, addressing all the changes coming in to force, and how you might be affected.

Good luck OP. Hope all goes well for you x

Yes I was thinking more of occupational pension contributions.

Ahh, ok

Gluteus People currently on tax credits are having different changes to new claimants, so your idea would not cover this situation.
It is up to you to find out what the plans are.

Caroldecker - Is it correct that op has no recourse to tax credits now if her area is fully implementing UC or is there a way around it? I know the situation won't affect many as I imagine the majority of claimants needing top ups will not have anywhere near £16k in the bank.

Roll-out timetable here. As I understand it, once rolled out, CTC are not available except under transition rules.