How Do Your Tax Credits Compare With The Rest Of The UK?
Do you claim Working Tax Credit or Child Tax Credit? Or, perhaps you are entitled to both types of credit? Whatever you claim, you may be interested to see how your tax credits claim compares to people in the rest of the UK.
In this article, we look at the latest set of tax credit figures which show the average annualised amount of tax credits that people received across the UK in 2011. We also look at plans to change the tax credits system in October 2013 and how this may affect you.
Comparing your tax credit claim
The average tax credit claim varies depending on where you live in the UK. For example, the average tax credit claim is highest in London and in Northern Ireland and lowest in the South East and South West of the country.
The average annual tax credits claim in the UK is £4,525. Let us know in the comments below if you are significantly higher or lower than the UK average, and how you compare to the average tax credits claim in your region.
How do you compare? Tell us below. Or, keep reading to find out the latest on government plans to change the tax credits system from 2013.
Research suggests low earners will lose out when tax credits reformed
Gingerbread, a group which campaigns on behalf of lone-parent families, has warned that the Coalition would ‘give with one hand and take with the other’ when the Universal Credit is introduced from October 2013.
The Independent reports that ‘the new system will discriminate against low earners who currently rely on tax credits to top up their wages’.
In its report, Gingerbread says: “At present, a £1,000 increase in the personal tax allowance is worth £200 per year to every basic-rate taxpayer, because they pay 20 per cent tax on £1,000 less of their income.
“This is true whether or not people are on tax credits, as these are calculated on the basis of total earnings without reference to how much tax a household is paying. Universal Credit, on the other hand, will be assessed on the basis of post-tax income, with people getting less of the credit the higher their income is after tax.” In this situation, someone on tax credits would benefit by only £70.
The government has been urged to look at the plans again ahead of their implementation in October 2013. How would these plans affect you? Are you worried about the changes to the tax credits system? Let us know in the comments below.