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Review Tax Credits

Comment 15th July 2010

Tax credits have enabled too many families to split up and remain relatively comfortable. It is wrong that families are not supported and that a single mother working 16 hours a week with tax credits and maintenance payments can take home almost £2000 per month. The tax credit payment should take into account the amount of maintenance received and maintenance should be based on income. It is also not right that once the tax credit amount is awarded it stays for one year regardless of change in circumstances. Therefore if the mother leaves her 16 hour a week job she still receives the same level of tax credits which is significantly more than unemployment benefit. Also if a boyfriend moves in with her the tax credits remain unchanged until the next scheduled review! It should not pay to split a family up the tax credit system makes it too easy.

Why does this matter?

It will save money and also encourage the family unit.

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