Around one million families will be unable to claim the new Child Tax Credit from today through the ...
Around one million families will be unable to claim the new Child Tax Credit from today through the Inland Revenue, because of a government imposed cut-off point.
Figures presented by the Conservative party indicate around 5.2m families are entitled to claim the credit but only 4.2m are receiving their tax credit.
At least 10% may have chosen not to make a claim because the system is simply too complex, suggests David Willetts, shadow Secretary of State for Work and Pensions, who will today call a Commons debate to demand the suspension of the deadline.
Of these, the vast majority - that is, around 10 per cent of all families with children - appear not to have even made a claim due to the complexity of the system. Because they have missed today's deadline, these families are no longer eligible for a full-year tax credit claim.
"Everyone's attention has been on the families that have applied for the Child Tax Credit but have had to wait weeks to receive it. Today I am shining the spotlight on the families who haven't even applied for the tax credit in the first place. It is deeply worrying that if they haven't applied by today, they won't be able to get the money for the full tax year," says Willetts.
"Gordon Brown should abolish this year's deadline for tax credit claims. Instead, ministers should allow people who claim at any point within the current tax year to have their claim backdated to April. That might help increase the level of take-up from catastrophically low to just about respectable. Unless we do this, too many of Britain's families will carry on losing out," he adds.
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