Families 'missing out on millions' in tax credits

Families will collectively miss out on £1.5bn this year through failing to claim child tax credits they are entitled to.

Around 9 per cent of people who are eligible for the child tax credit during the current financial year are expected not to not claim it, missing out on an average of 3,411 each, according to professional advice group unbiased.co.uk

The group said the number of people failing to pick up the benefit was 1 per cent higher than in 2009-10, when 8 per cent of eligible families failed to claim it.

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The research also found that a quarter of pensioners are failing to claim the pension credit, and are expected to collectively miss out on 2.4bn this year.

Karen Barrett, chief executive of unbiased.co.uk, said: "People are missing out on huge quantities of money this year by failing to claim child tax credits or pension credits to which they are entitled.

"The system has been set up to help those who need it most and quite simply if you don't claim your credit, it expires.

"We would urge people to get their financial planning in order and review their current situation today to ensure they aren't missing out on what is rightfully theirs."

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n Parents are being forced to give up work due to the soaring childcare bills they face.

Four out of 10 families with at least two children think it is not worth while for both parents to work full-time due to the childcare fees they would have to pay, according to insurer Aviva.

The group said full-time childcare places for two children were likely to cost nearly 17,000 a year.

Around 39 per cent of people who reduced their hours or did not return to work following the birth of their second child said financial considerations were the main factor in their decision.

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This contrasts with 57 per cent who did not go back to full-time work after the birth of their first child who said wanting to spend more time with their new baby was the key factor in their decision.

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