Budget 2015: Tax credits loophole means existing families with three children WILL be hit
The Tory Chancellor has tried to sweeten the pill of one of his biggest cuts – limiting tax credits to just two children. He’s insisted existing families will be protected because the payments, worth up to £2,780 per child, will only be withdrawn from children born after April 2017.
But the small print of his welfare-slashing Budget tells a very different story. It shows many big families are likely to be hit despite already having three or more offspring before April 2017.
A loophole will count families as a ‘new claim’ if they’ve had a 6-month break in claiming tax credits. And those who already have three children – but who claim for the first time after April 2017 – will also count as a ‘new claim’, meaning they only get paid for two children.
That means anyone who lifts themselves out of poverty for a long stretch but then loses their job again will lose thousands of pounds.
A Treasury spokesman confirmed the policy today to Mirror Online.
Read more about this here: http://www.mirror.co.uk/news/uk-news/budget-2015-tax-credits-loophole-6035314?ICID