The Tax Credits Up-rating Regulations 2012 — 13 Mar 2012 at 20:22

The majority of MPs voted to increase certain tax credits in line with inflation and to make changes to elements of the tax credit system.

The motion approved by the majority of MPs in this vote was:

• That the draft Tax Credits Up-rating Regulations 2012, which were laid before this House on 1 February, be approved.

The order:

• Increases certain elements of the Working Tax Credit and the Child Tax Credit in line with inflation by 5.2 per cent.
• Introduces an incomes fall disregard of £2,500. (ie. a provision ignore the first £2,500 loss of income from one year to the next when calculating eligibility for Working Tax Credit)
• Tapers the family element of Child Tax Credit immediately after the child element. Previously the family element of Child Tax Credit was protected until income reached the "upper limit" of £40,000.

Debate in Parliament | Source |