Emergency Budget Impacts on Lone Parents!
Posted on 10th August 2010
The June 2010 Emergency Budget introduced numerous changes that will affect lone parents in the years to come.
From October 2011, those lone parents whose youngest child is 5 years and above will become eligible for Jobseeker's Allowance rather than Income Support. Existing Income Support claimants will be transferred to JSA from April 2012.
From April 2011, there will be further amendments to the way tax credits are calculated. The taper will increase from 39% to 41%; this means that once the income threshold is breached, tax credits will be withdrawn more quickly. The baby element of Child Tax Credit will be scrapped. The income disregard between two tax years will decrease from £25,000 to £10,000. Claimants will have to be careful to keep Her Majesty's Revenue & Customs informed of significant income rises to avoid an overpayment.
The Sure Start Maternity Grant is to be restricted to the first child only from April 2011 and the Health in Pregnancy Grant of £190 will be abolished from January 2011. For a full summary of all the changes download below.
