TaxPersonal TaxBrown’s boost for kids’ credit

Brown's boost for kids' credit

The chancellor today demonstrated his family man credentials after announcing an increase in the Children's Tax Credit.

Gordon Brown placed the needs of ‘the family’ at the heart of his Budget after revealing CTC – which will be introduced in April – will be worth £10 a week, an increase on the expected £8.50 a week.

Alastair Kendrick, Ernst & Young tax director, said: ‘I wonder if there is likely to be an imminent announcement in the Brown household. This is truly family planning.’The move represents a tax cut for families with children under 16, according to Brown – worth 3p off the basic rate of tax for a single earner family on average earnings.

Additionally, from April 2002 CTC will also be increased by an additional £10 a week for families in the first year of a child’s birth.

Continuing on his family theme, the Working Families’ Tax Credit will be increased by £5 a week from June this year.

Brown also explained the need to balance work and family life as he announced the introduction of two weeks paternity leave at £100 a week and a rise in maternity pay to £75 a week by 2002.

Links

Budget 2001

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