The below Parliamentary question was asked by Rebecca Long Bailey on 2016-03-01.
To ask Mr Chancellor of the Exchequer, with reference to the Government’s memorandum submitted to the Lords Secondary Legislation Committee on 28 January, how many of the 800,000 tax credit claimants with a reduced award to an income rise above the new level of disregard are women.
Damian Hinds
From April 2016, the income rise disregard – the amount by which a tax credit claimant’s income can increase within a year before their tax credit award is adjusted – will be reduced from £5,000 to £2,500.
The only people who will be affected by this will be those who see an increase in their in-year income by more than £2,500. There will be no net cash losers because their income will have increased.
In the subsequent tax year, a claimant’s tax credits award will be calculated in the usual way, using their full annual income for the previous year to determine their tax credit entitlement. This means that after the change in the tax year, whether the claimant’s increase in income was above or below the disregard level, their tax credit award for the following year will be adjusted to what it would have been had no disregard existed.
