Monday, 27 June 2011

Parents of Disabled Children Could Lose £1,400 in Welfare Shakeup

A hundred thousand disabled children will lose out when a crucial welfare benefit is halved under controversial reforms. Parents can now receive a maximum of £54 a week through tax credits to help with the extra cost of looking after a child with disabilities. But under the welfare reform bill, passed by the Commons last week, that benefit will form part of universal credit and be cut to £27 a week, plunging thousands of families below the poverty line, according to the Children's Society. The government says the money saved will allow it to offer larger sums to children with severe disabilities. However, the Children's Society said some families would lose £1,400 a year. It is claimed this could cost families with a child born with a disability about £22,000 by the time the child reaches 16. The government says it will provide transitional payments to ensure people do not lose out, but the guarantee does not extend to new claimants and will not be protected from inflation. Cash protection will also be lost through as yet undefined changes in a family's circumstances. Read more on the Observer website.

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