I could've got this all wrong, but I have a client who gets £64 IB, lone parent, 4 kids under 16. As of April 6 04 she is not entitled to IS because HER income of IB is above the IS single person rate, and the kids are paid by CTC. Am I right in thinking that prior to this she would have received IS becasue the IB would have been topped up with child personal allowances, where as now the children's income is separate from hers and this means no IS for her, hence no school dinners, no full HB /CTB etc. If I am right in this do other people think this is a right rip off, how does it help lift children out of poverty? Why ain't we out on the streets rioting?!!!

Child Tax Credit on it's own with an annual income under about £13,000, still acts as a full passport to all previous means tested benefit passports, including School meals, prescriptions, etc.

Problems only normally happen once Working Tax is claimed as well.

Which may be true but I'm not sure it's a good enough reason to stop rioting, on the subject of tax credits in toto.

I think there are many good reasons for rioting over tax credits. I just can not get rid of the impression that the government would have found it impossible to make changes to existing benefits, but have got away with just about everything by creating a new type of "benefit" and when neccesary denying it is a benefit.
It is less accountable (see anything about the appeals and overpayments) so complicated it is almost impossible to check if the correct amount is being paid for anyone with more than one change of circumstance, and completely throws out the idea that benefits guarantee a minimum level of income to those in need.
It cannot be backdated for asylum seekers. It does not allow access to budgeting loans. ....
I could go on and on. On a bad day I do, while muttering.

It may be worth checking how long client has been in receipt of IB as she will go back on to IS when the Disability premium is included in her assessment after 12 months.

In reply to your message I have a client in the same circumstances (with 3 children) who does not qualify for IS or full HB/CTB because she is on IB and the children are paid by CTC.

However, after my initial frustration and annoyance with the multiple calculations required to work out her benefit entitlement, it did turn out that she had higher income under the new system than had she been receiving IS and then full linked HB/CTB.

Although she does not get full HB/CTB her child benefit is not offset against any IS she would have got and overall I think she is about £23 per week better off. That is, if I have done the sums correctly.

However, it is arguable that this amount is not enough to compensate for the hassle and stress involved in not having linked full HB/CTB because any change in her IB, CTC amount results in a change of circumstances for her HB/CTB whereas with the IS in place that would have been avoided.

Your client still qualifies for free school meals under these circumstances.

GOing back to other problems, Community Care Grants will not be payable unless on IS/JSA-IB/PC. There must be a lot of families who currently regularly rely on these for replacement items, who will have a nasty shock when they are 'floated off' in the near future. One example would be replacement mattresses for children with enuresis. I'm sure there are others....

We should definitely be out in the streets rioting. I have a client in the same circumstances. Not only will the poor woman have to deal with an additional agency (IR) in getting/negotiating her benefits but she will lose access to Social Fund Grants and Loans and all the concessionary thingies local authorities offer to those families on Income Support.
In addition, apparently Tax Credit overpayments are recoverable from CTC - so much for Tony's commitment to reducing child poverty.
P.S. Could the person who is convinced that full CTC acts as a passport, spell out exactly what is covered and how the IB mum claims these passported benefits? TA!

This is the information I have on passporting

Social Fund - funeral and maternity payments
You will be entitled to these, if you receive
Working Tax Credit with a disability element, or
Child Tax Credit at a rate higher than the family elements

NHS Benefits
You will be entitled to full NHS benefits, if you get:
Working Tax Credit and Child Tax Credit, or
Working Tax Credit with a disability addition, or
Child Tax Credit only and,
annual income for tax credits is below £14,600.

NHS benefits include free prescriptions, dental treatment, wigs and fabric supports, sight tests, vouchers towards the cost of glasses or contact lenses) and full refund of (reasonable) travel costs to hospital for NHS treatment.

The Inland Revenue will send details of those who qualify to the Prescription Pricing Authority who will send you a “tax credit exemption certificate”.

If you are waiting on a certificate you can can sign a declaration form for NHS treatment, ticking the box “is entitled to, or named on, an NHS Tax Credit Exemption Certificate”.

If your income goes above the £14,600 limit, you can continue using your exemption certificate until it runs out.

Free School Meals/Free Milk and Vitamins
entitled to CTC &
income for tax credit purposes is below £13,480 per annum &
do not get WTC.