2012 Budget – a warning for the poorest – £10b cuts on the way.

Ten billion pounds  to be cut from the welfare budget We have not been told what the cuts will be but the fact it is coming from the welfare budget means it is coming from the poorest families.

Changes to income tax thresholds whilst positive for many people this measure leaves single parent families less well off than two parent families. As they only benefit from one rise, whilst two parent families with two working parents benefit twice.

Working families with disabled childrennow exempt from Working Tax Credits changes – a vital and sensible change.The rules due to come into effect from April, require couples to increase their working hours from 16 to 24 to continue to receive Working Tax Credits. Those unable to do so face a drop in income of up to £74 per week. But regulation changes announced in today’s Budget, say that a couple will continue to receive Working Tax Credits so long as one partner works 16 hours a week and their partner is entitled to Carer’s Allowance. These families The government has also amended the rules on getting help with childcare costs. From April childcare costs can be included in a tax credit claim where one partner works 16 hours a week and their partner is entitled to carer’s allowance. This opens up childcare to a group that weren’t previously able to access it.

Child Benefit: getting rid of what David Cameron called the “cliff edge” is positive but the government has still left in place the anomoly that two parents who both earn 49k keep it and a lone parent earning £51k starts to loose it.

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