Working Tax Credit (WTC) & Child Tax Credit (CTC) ...

welfarechangesLower income limit for Child Tax Credit

From April 2012 the lower income limit for CTC was reduced. Previously if you were earning under £41,300 and had children you would have been eligible for (some amount of) the benefit.

This cut of point for qualifying for CTC been reduced to (approximately);

  • If you have one child, an annual income of up to £26,000, or
  • if you have two children, an annual income of up to £32,200

If income is above these amounts a person could still qualify under certain conditions.e.g. They have more than two children, they need to pay for childcare, or they are disabled.

Working hours increased for Working Tax Credit

In April 2012 the required amount of working hours for a couple with children to qualify for WTC was increased from 16 to 24 hours per week, with one member of the couple working for at least 16 hours per week. It remains at 16 hours per week for lone parents.

The childcare element of WTC was reduced from covering 80% to 70% of the cost of childcare.

The 50+ element had meant that until April 2012 people over 50 could qualify for WTC if they worked over 16 hours a week, and would receive an extra amount in their award. After April 2012 this was abolished so that people aged 50+ would need to work at least 30 hours to qualify for the benefit, and would no longer receive an extra amount.

- If your joint working hours are less than 24 a week, you can still get Working Tax Credit if one of the following applies;

  • one of you is aged 60 or over and working at least 16 hours a week,
  • one of you is disabled and working at least 16 hours a week,
  • one of you works at least 16 hours a week and the other person is entitled to Carer's Allowance – even if they don't get any payments because they receive other benefits instead,
  • one of you works at least 16 hours a week, and the other person is ‘incapacitated’, an in-patient in hospital, or in prison (serving a custodial sentence, or remanded in custody awaiting trial or sentence).

These changes are part of a package of reforms to the tax and benefit system this government is making - dismantling entitlements to social security and welfare support and attacking some of the poorest people in our society. Many more people are being pushed into poverty because of what this government is doing.

More information, and any further changes to the details documented here, can be found at: