It seems to myself and a collaegue that claimants with children who are on Income Support will suffer a direct cut in their income when they are switched to Child Tax Credit. We work it out like this: The child premium and family premium of Income Support will be changed to the family element and child element of Tax Credit. The child element is £1,625 a year per child, which works out at £31.25 a week. But the child premium for Income Support is £42.27 a week. The family element is £545 a year, which works out at £10.48 a week. But the family premium in Income Support is £15.95 a week. Even when you take child benefit into account, this still looks like a cut in income. Is this how it works out? Or have we got our sums wrong? We'd really like to hear what other advisers think.
|