HISTORIC PRESS RELEASE : Money with your name on it – Chancellor urges families to claim New Tax Credit [September 2002]

The press release issued by HM Treasury on 16 September 2002.

A new campaign to encourage people to claim their share of an extra £2.7 billion a year for families and children was launched by Chancellor Gordon Brown, Secretary of State for Work and Pensions Andrew Smith and Paymaster General Dawn Primarolo today.

The new Child Tax Credit and Working Tax Credit will provide a simpler and more streamlined system to support families and to make work pay. Around 6 million families are expected to benefit from the new credits.

The multi-media campaign, which includes TV, Radio, Press and online advertising is aimed to ensure that these families and all others who might benefit make their claims in time to receive payments in April 2003 when the new credits will start.

Launching the campaign, Chancellor Gordon Brown said today:

“The Child Tax Credit and Working Tax Credit mark the biggest revolution to the tax and benefits system since Beveridge. They will modernise the existing systems, ensuring better support for children whether or not their parents are in work and making work pay for those without children as well. Six million families will be eligible for support.

Instead of a tax credit paid through the wage packet to the main earner, normally the father, we will pay the Child Tax Credit directly in cash or through a bank account to the carer, usually the mother. Up to £2 billion pounds will be transferred from fathers to mothers – providing them and their children with a secure and regular source of income”

Secretary of State for Work and Pensions Andrew Smith said:

“This Government introduced a work first approach because work gives people a stake, it builds their self-esteem and it is the best route out of poverty. Tax credits are at the heart of our strategy to make work pay. Making work pay gets more people into jobs and boosts family income.”

Paymaster General Dawn Primarolo said:

“Nine out of ten families with children will benefit from the new child tax credit so it is vital that everyone is aware of the changes and knows how to claim their entitlement.”

That is why we are publicising the new credits through Television, Radio and Press advertisements to reach as wide an audience as possible. We have made it as easy as possible for people to make a claim: they can find out more and make a claim on-line at

www.inlandrevenue.gov.uk/taxcredits. They can also visit one of the Inland Revenue Enquiry Centres or call the helpline on 0800 500 222

The Child Tax Credit brings together the various strands of support for families with children – the child elements in Income Support, Jobseeker’s Allowance, Working Families’ Tax Credit (WFTC), Disabled Person’s Tax Credit (DPTC) and the current Children’s Tax Credit – into one streamlined system. For the first time it will be paid direct to the main carer – usually the mother.

The Working Tax Credit will broadly replicate the adult support in WFTC and extend the principles of WFTC and DPTC to adults without children to create one transparent instrument to make work pay, paid through the wage packet. It will also include support with the costs of childcare, building on the success of the existing childcare component of WFTC and DPTC.

The communications campaign launches tonight and is intended to encourage take-up and inform people that tax credits for children will now be paid directly to the main carer.

The campaign clearly communicates how tax credits are changing and explains who is eligible, what they could be entitled to and how they can claim tax credits or get further information.

The campaign idea, ‘It’s Money With Your Name On It’, is intended to motivate people to claim their entitlement. In other words, they are entitled to this money in recognition of their contribution to the UK – through bringing up children, or working. So, the money is rightfully theirs and they should make sure they claim.

In the month following today’s launch in London, a number of events will be taking place across the country raising awareness of the changes and allowing representatives of local interest groups the opportunity to ask Treasury Ministers and Inland Revenue officials questions about the new system.