Child Tax Credit Rule Changes-What Manchester Parents Need To Know

Kerry Cabbin | 6th April 2017

FROM today April, 6, the government have introduced new rules that will affect families that currently claim child tax credits.

Families that receive tax credits and Universal Credit will be affected by the upcoming changes, which introduces a two-child limit on tax credit claims and the £545 payment for newborn children scrapped.

These rule changes mean that any child that is now born into a family which already has two children will not receive further support from the government.

From autumn 2018, families that make new claims under Universal Credit will only be able to claim for the first two children, even if they were all born before April 6. For those that currently receive Universal Credit or tax credit payments will not have their claims ended or changed for as long as their family’s existing claim continues.

The biggest group affected will be working families with three children, who will miss out on up to £2,780 per year as a result of the cut. Larger, non-working families already have their benefit awards limited by the benefit cap so are not the main target of the policy.

Overall, upwards of an estimated 850,000 families with more than two children are likely to be affected, around two thirds of whom will be working. Approximately two thirds will have only three children.

New analysis from the Child Poverty Action Group (CPAG) and the Institute for Public Policy Research (IPPR) shows the new cuts limiting universal credit to the first two children in a family will push another 200,000 children below the official poverty line.

Chief Executive of Child Poverty Action Group Alison Garnham said:

“This is a particularly pernicious cut because it suggests some children matter more than others. It’s also illogical because no parent has a crystal ball. Families that can comfortably support a third child today could struggle tomorrow and have to claim universal credit because, sadly, health, jobs and relationships can fail. Our analysis shows another 200,000 children will be in poverty once Universal Credit is fully rolled out, directly because of this cut. Surely children should not have their life chances damaged because of the number of siblings they have.”

 

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