In some of the worst cases, employers have sacked workers claiming the credit or cut their hours to avoid the administrative work involved. One lone mother of three children who consulted the Citizens' Advice Bureau had been fired when her WFTC switched from direct payment to being awarded through her pay packet, because her employer 'could not cope with the hassle'.
NACAB believes that WFTC, which is one of the most important tools in the Government's drive to end child poverty, could help many more low-income families. Instead, excessively rigid rules have made it difficult for parents on low pay to claim the childcare tax credit, which provides help with childcare costs.
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