MORE than 10,000 families in North Lincolnshire will lose their entitlement to child tax credits worth hundreds of pounds a year, it has been revealed.

And 6,000 more families in the area could have their benefit reduced within the next two years, it has been claimed.

Figures revealed by HM Revenue And Customs show that 10,600 families in the area are set to lose the benefit by 2012 under proposals in last month's emergency Budget.

Child tax credits are currently paid on a sliding scale for families with incomes of up to £58,000 – or £66,000 for those with a child under one.

From next April they will be available only to families earning less than £40,000 a year.

There will be a further cut in April 2012, when families earning more than £30,000 with just one child will not receive any tax credits, while those earning at least £25,000 will also see their entitlement cut.

Brigg And Goole MP Andrew Percy said: "We made it clear at the time of the budget that clearing up Labour's mess was going to be painful and we were going to have to spread that pain around.

"I don't think it is right that families who earn more than £50,000 a year are able to claim child tax credits. This is about fairness."

But Scunthorpe MP Nic Dakin countered, saying: "This will have a negative impact on people who child tax credits have helped.

"It seems to me that people on relatively low incomes, particularly if this is a combined income, will be discriminated against."

Government figures show that 4,100 families in North Lincolnshire will be affected by the first wave of cuts next April.

This includes 1,100 families who currently claim the benefit while earning a combined income of more than £50,000 a year. A family earning £50,000 or more currently receives £545 a year if they have a child over one. Next year they will get nothing.

A further 3,000 families, who currently receive child tax credits and earn a combined income above £40,000 a year, will also have their benefits cut.

A family earning between £25,000 and £40,000 will continue to receive the payment for now.

But in the financial year between April 2012 and 2013, the 6,500 families in North Lincolnshire bringing home between £30,000 and £40,000 will receive nothing.

Another 6,000 families in the area, who currently earn between £20,000 and £29,999, could also see their benefits reduced in 2012.

Child tax credits were one of Gordon Brown's principal policies as Chancellor and 90 per cent of families currently have some entitlement – at a cost of £20.7 billion a year.

A 25-year-old mother from Crowle, who did not wish to be named, has two sons, one aged five and the other aged five months.

She said: "I feel that the average income families are going to see a real hit to their pockets and it will force a lot of parents out of work to stay at home and look after their children.

"But I don't think that is a bad thing.

"I think it depends how important money is to you.

"We would always do without luxuries so we can afford to do things with the kids.

"I think it's important for families to think about what's important at the time."