As revealed by HM Revenue and Customs (HMRC), Tax Credits rates will increase for all claimants starting today.
People who receive Working Tax Credits or Child Tax Credits payments will have their maximum annual rates increased for the 2022/23 financial year.
Dependent on circumstances, claimants may be eligible to receive one or both of the payments — and may additionally be eligible to receive one of two types of disability element add-ons.
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Important to note is that these are for claimants who already receive the legacy benefits, and new applications should be done via the Department for Work and Pensions (DWP) for Universal Credit.
Working Tax Credit is intended for workers who have a low income, and whether they are self-employed or have an employer is not relevant — nor is whether they have any children.
Child Tax Credit, meanwhile, is designed to help those who have children, and is paid on top of Child Benefit and the Scottish Child Payment — whether you are in employment or not is irrelevant.
HMRC data reveals that there were nearly 2 million families claiming either Child Tax Credit or Working Tax Credit in December 2020.
As reported by the Daily Record, here is a summary of the proposed new payment thresholds and rates for the 2022/23 financial year.
Working Tax Credit rates for 2022/23 (yearly amount shown)
These changes will come into effect on April 6 and applied from Monday, April 11.
Working Tax Credit income threshold
- 2022/23 rate: £6,770 (from £6,565)
Basic element
- 2022/23rate: £2,070 (from £2,005)
Couples and lone parent element
- 2022/23 rate: £2,125 (from £2,060)
30-hour element
- 2022/23 rate: £860 (from £830)
Disabled worker element
- 2022/23 rate: £3,345 (from £3,240)
Severe disability element
- 2022/23 rate: £1,445 (from £1,400)
Child Tax Credit rates for 2022/23 (yearly amount shown)
Child Tax Credit income threshold
- 2022/23 rate: £17,005 (from £16,480)
Family element
- 2022/23 rate: £545 (nom change)
Child and qualifying young person element
- 2022/23 rate: £2,935 (from £2,845)
Child disability element
- 2022/23 rate: £3,545 (from £3,435)
Severely disabled rate of the child disability element
- 2022/23 rate: £1,430 (from £1,390)
Child Benefit payment rates 2022/23
There are two Child Benefit rates in place.
New weekly rates from April 11
- Eldest or only child - £21.80 (from £21.15)
- Additional children - £14.45 (from £14.00)
Guardian's Allowance rates from April 11
The new weekly rate for Guardian's Allowance will be £18.55 - an increase of 55p on the current 2021/22 rate of £18.00.
Full details of the rate changes can be found on the GOV.UK website here.
Use the Tax Credits calculator here to work out how much you could get.
