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Welfare Tax Credits

Volume 475: debated on Wednesday 14 May 2008

To ask the Chancellor of the Exchequer pursuant to the answer to the right hon. Member for Birkenhead (Mr. Field) of 25 March 2008, Official Report, column 42W, on tax credits, what the highest possible income is which a family which (a) claims and (b) does not claim the disability element for any children or adults with (i) one, (ii) two, (iii) three, (iv) four and (v) more than four children while being eligible for the child care element of the working tax credit. (204920)

The highest level of income at which a family with maximum child care costs could benefit from the child care element depends on the number of adults and children in the household who claim the disability element, and whether they also claim the severe disability element.

The following table shows some examples based on different numbers of children in the family, and different members of the family claiming the disability element. They are based on the maximum eligible child care costs of £175 per week for one child, and £300 per week for two or more children. All incomes are rounded down to the nearest £1,000.

Highest level of income at which a family could benefit from the child care element

£

Number of children in the family

Individuals claiming disability element within the family

1

2

3

4

5

No-one

41,000

68,000

73,000

78,000

84,000

1 adult

47,000

74,000

79,000

84,000

90,000

1 child

48,000

74,000

79,000

85,000

90,000

1 adult and 1 child

62,000

80,000

86,000

91,000

96,000