Child Tax Credit is a Government benefit available in England, Scotland, Wales and Northern Ireland. The payments are intended to help provide people who are bringing up a child or children with extra financial support. Child Tax Credit is usually paid every four weeks, but claimants may be able to ask to have it paid weekly.
How much is Child Tax Credit?
Child Tax Credit is calculated as the following for the 2020/21 tax year:
The basic amount of Child Tax Credit is up to £545 per year, and is known as the family element.
For each child the yearly amount is up to £2,830, and this is known as the child element.
Claimants of Child Tax Credit can also get up to £3,415 per year on top of the child element for a disabled child, and this is known as the disabled child element.
Claimants can also get up to £1,385 per year for each severely disabled child, in addition to the child element and the disabled child element.
If all of a claimant’s children were born before April 6, 2017, the claimant could get the family element and the child element for each of their children.
However if one or more of a claimant’s children were born after April 6, 2017, they could get the child element of Child Tax Credit for up to two children.
Claimants with children born after this date may still be able to get the child element of the benefit for more children if an exception applies.
Who is eligible for Child Tax Credit?
In most cases tax credits, like other legacy benefits, have been replaced by Universal Credit.
However, in some cases, people can still make a new claim for Child Tax Credit, depending on their personal circumstances.
Citizens Advice explain: “If you already get Working Tax Credits, you can still add Child Tax Credits to your claim.
“You can make a new claim for Child Tax Credits if you’re getting, or recently stopped getting, a benefit with a severe disability premium (SDP).
“If you haven’t been getting an SDP, you might be able to apply for Universal Credit instead.”
According to Turn2Us, only one household can get Child Tax Credit for each child.
Claimants also do not have to be working in order to claim Child Tax Credit.
Does claiming Child Tax Credit affect other benefits?
Claiming Child Tax Credits can affect how much claimants receive in other benefits.
According to the Government website, claiming tax credits can affect how much claimants receive in Housing Benefit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance and Pension Credit.
Claiming Child Tax credits does not affect Child Benefit payments.
Tax credit payments will come to an end if a claimant or a claimant’s partner makes a claim for Universal Credit.
This is also the case if a claimant moves in with a partner who makes a claim for Universal Credit.
Claiming tax credits may also entitle people to other help, such as support with prescriptions, vitamins, home repairs from the council and heating/energy costs.
According to Turn2Us, Child Tax Credit is included in the Benefit Cap.