Budget 2007 highlights for Lone Parents

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The In Work Credit a £40 a week payment in the first year of work for lone parents who have previously been on Income Support for 12 months will continue as a policy for another year until June 2008. It is only available to lone parents who live in Bradford, Cardiff & Vale, Dudley & Sandwell, Lancashire West, Leicestershire, South East London, West London, Edinburgh, Central London, Leeds, North London and Staffordshire. In London the value of the credit will increase to £60 a week.
From April 2007 the Working Tax Credit, including the Childcare element, will continue to be paid for four weeks after someone finished a job.
From April 2008 the threshold in Working Tax Credit (below which you get maximum credits) will increase by £1,200 to £6,420 per annum. However, the withdrawal rate of tax credits will also increase at this point-- from 37p in the pound to 39p.
The 10p 'starter' rate of Income Tax will be abolished from April 2008. At the same time the basic rate will be cut from 22p to 20p.
They have announced 'local employment partnerships' with several large retail employers who will work with Jobcentre Plus at a local level to help the long term unemployed and economically inactive back to work.
In April 2008 the child element of the Child Tax Credit will rise by £150 more than it would have done if it had only been raised by the same level by which earnings have grown. This means that from 2008 the child element will be £2080 a year (at present it is £1765).
By 2010, Child Benefit for the oldest child will have risen by £20 - it will go up progressively in three stages (at present it is £17.45).
Free childcare places will be offered for 15,000 parents who are out of work but undertaking training.

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