Tax Credits, Budget 2010
Child Element
For children aged one and two the Child Element will increase by £4 per week from April 2012. The Child Element for others will increase by £20 above earnings indexation to £2,300 per year in April 2010. An increase of £65 per year. The disabled element will increase by 1.5%. The income threshold for those on child tax credit only rises to £16,190.
Fixed period childcare costs
From April 2010 awards for fixed period childcare costs (such as claims of a few weeks during the school holidays) will be averaged and paid over that fixed period and not averaged over the year. Families will now be able to receive all the financial support towards their childcare costs when they need it.
Working Tax Credits for the over 60s
From April 2011 those aged 60 and over will qualify for Working Tax Credits if they work at least 16 hours a week. The Working Tax Credit (except the childcare element) will increase by 1.5%.
Currently those aged 60 and over qualify for Working Tax Credits if:
they work 30 hours or more a week;
they work 16 hours or more a week and they have dependent children, or qualify for the disability element ; or
they work 16 hours or more and they are returning to work after being on certain benefits for six months or more (only available to the over 50s)
Working Tax Credits - Access to Disability Element
From April 2011 those claiming Employment and Support Allowance (previously Incapacity Benefit) who have a "limited capability for work" and leave ESA to move into work for at least 16 hours a week with the help of Working Tax Credits will automatically pass the disadvantage test and qualify for the disability element of Working Tax Credit.