Nursery World - Families will be worse off as new tax year begins

Families with children are set to lose an average of 500 a year under tax and benefit changes coming into force tomorrow.

More than £2 billion of cuts are taking effect over the Easter weekend, the start of the new financial year.

Families will be worst hit, with around 210,000 expected to lose all £3,870 of their working tax credit because of the rise to minimum working hours from 16 to 24 per week.

From tomorrow, families with a combined income of more than £26,000 - down from the current level of £40,000 - will no longer be entitled to child tax credits, worth £545 a year for households with one child.

Families with two children and an annual income of more than £32,000 will also no longer be eligible for child tax credits.

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