Since 1997 the Government have introduced a range of measures to make work pay such as tax credits and the national minimum wage, which have increased the minimum income the people can expect on moving into work. As a result of tax and benefit reforms, by October 2008, families with children in the poorest fifth of the population will be on average £4,100 a year better off. The following list outlines those measure that impact exclusively on families with children.
April 1999—Above indexation increase in child benefit introduced
October 1999—Working family tax credit introduced
April 2000—Increase in under-11 working family tax credit child rate
June 2000—Increase in under-16 working family tax credit child rate
October 2000—Increase in under-16 child rates in income support and other income relate benefits
April 2001—Children’s tax credit introduced at £520 a year
June 2001—£5 increase in working family tax credit basic credit
October 2001—£1.50 increase in income support child credits
April 2002—Introduction of under one’s children’s tax credit
June 2002—Increase in working family tax credit basic credit
October 2002—Increase in income support/job seeker’s allowance child credits
April 2003—Introduction of new tax credits
April 2004—Increase in child element of child tax credit by £3.50
September 2004—Introduction of education maintenance allowance
April 2005—working family tax credit increase in child care limits to £175/£300 per week
April 2006—Extension of child benefit and child tax credit to young people in learning.
April 2006—Percentage of child care costs eligible for support through working tax credit increased from 70 per cent. to 80 per cent.
April 2008—Earnings uprating of child element of child tax credit extended to 2009-10.
April 2008—Increase child element of child tax credit by £175 above earnings indexation
April 2009—Eldest child benefit rate increased to £20 per week
April 2009—Increase child element of child tax credit by £50 above indexation
October 2009—Child benefit disregard introduced in housing and council tax benefits
April 2010—Increase child element of child tax credit by £25 above indexation