BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
    You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
 Tuesday, 14 January, 2003, 11:45 GMT
Mothers reap tax credit bounty
A moneybox with coins
The new Child Tax Credit comes into force next April
UK families have been urged by Chancellor Gordon Brown to make full use of a new child tax credit.

Mr Brown said that the child tax credit, which comes into force in April, should increase support for families dramatically.

April's new tax credits are the biggest financial boost for mothers since the introduction of child benefit,

Gordon Brown, Chancellor of the Exchequer

According to the Treasury, 90% of families will be eligible for the credit, with the money paid directly to the mother rather than to fathers.

An ICM poll commissioned by the Treasury suggests that paying the tax credit to mothers rather than fathers enjoys 70% public support.

New credit

The credit will mean that most mothers receive 26.50 a week for the first child, made up of child benefit of 16.05 and a further 10.45 additional credit.

The credit is available to families with earnings of up to 58,000.

Children currently receive support through the working families tax credit, the disabled person's tax credit, and income support or jobseeker's allowance, as well as the existing children's tax credit.

From April the child tax credit will integrate all this support into one package.

It will be paid in addition to child benefit, which remains a universal benefit - paid to all families with children.

In addition, families with earnings of up to 66,000 will get some help if they have a child less aged less than 12 months.

Complexity

However, there are concerns that people may be put off claiming the tax credits, as they are complicated.

There is evidence that existing tax credits are under-claimed, and critics suspect this is because of their complexity.

People who think they may be eligible for the new tax credits can contact the Inland Revenue either online, through its telephone helpline, or through an Inland Revenue enquiry centre

See also:

04 Nov 02 | Scotland
20 Sep 02 | Moneybox
13 Sep 02 | Working Lunch
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


 E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes