HM Revenue and Customs (HMRC) recently confirmed that Tax Credit payments will be changing for all benefits claimants over the new financial year which runs from April 6, 2022 to April 5, 2023.
The maximum annual rates increase for the year ahead was implemented on April 11 for everyone receiving Working Tax Credits and Child Tax Credits payments.
Depending on your household circumstances, you may be eligible for one or both payments, or you may also qualify for one of two types of disability element add-ons. However, it’s worth noting these are for existing claimants already receiving the legacy benefit and any new claims should be made through the Department for Work and Pensions (DWP) for Universal Credit.
Working Tax Credit is paid to people who are in work and on a low income – it does not matter whether you are an employee or self-employed, and you do not need to have children to get the payment.
Child Tax Credit is paid to people who have children and is paid in addition to Child Benefit and the Scottish Child Payment - you do not have to be working to receive it.
Figures from HMRC show that in December 2020 there were approximately 1.99m families claiming Child Tax Credit and/or Working Tax Credit with some 3.6m children in Tax Credit claiming families.
Here are the details 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 came into effect on April 6 and were applied to benefit claimant accounts on April 11.
Working Tax Credit income threshold
- 2022/23 rate: £6,770
Basic element
- 2022/23rate: £2,070
Couples and lone parent element
- 2022/23 rate: £2,125
30-hour element
- 2022/23 rate: £860
Disabled worker element
- 2022/23 rate: £3,345
Severe disability element
- 2022/23 rate: £1,445
Child Tax Credit rates for 2022/23 (yearly amount shown)
Child Tax Credit income threshold
- 2022/23 rate: £17,005
Family element
- 2022/23 rate: £545
Child and qualifying young person element
- 2022/23 rate: £2,935
Child disability element
- 2022/23 rate: £3,545
Severely disabled rate of the child disability element
- 2022/23 rate: £1,430
Child Benefit payment rates 2022/23
There are two Child Benefit rates in place.
Weekly rates
- Eldest or only child - £21.80
- Additional children - £14.45
Guardian's Allowance rates
The weekly rate for Guardian's Allowance is now £18.55.
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.
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