Tax Credits and Child Benefit

Working and child tax credits rates - £ per year (unless stated)

Working Tax Credit

2010-11 2011-12

Basic element
£1,920 £1,920

Couple and lone parent element
£1,890 £1,950

30 hour element
£790 £790

Disabled worker element
£2,570 £2,650

Severe disability element
£1,095 £1,130

50+ Return to work payment (16-29 hours)
£1,320 £1,365

50+ Return to work payment (30+ hours)
£1,965 £2,030

Childcare element of the Working Tax Credit

2010-11

2011-12

Maximum eligible cost for one child
£175
Per Week £175
Per Week

Maximum eligible cost for two or more children
£300
Per Week £300
Per Week

Percentage of eligible costs covered
80% 70%

Child Tax Credits

2010-11 2011-12

Family Element
£545 £545

Family Element, baby addition*
£545 n/a

Child Element
£2,300 £2,555

Disabled Child Element
£2,715 £2,800

Severely Disabled Child Element
£1,095 £1,130

Income Thresholds and Withdrawal rates

2010-11 2011-12

First Income Threshold
£6,420 £6,420

First Withdrawal Rate
39% 41%

Second Income Threshold
£50,000 £40,000

Second Withdrawal rate 6.67% 41%

First Threshold for those entitled to Child Tax Credit only £16,190 £15,860

Income Disregard £25,000 £10,000

* The baby element of the Child Tax Credit will be removed from April 2011.

What is Child Benefit & Who Can get it?

Child Benefit is a tax-free payment that you can claim for your child. It is usually paid every four weeks but can sometimes be paid weekly. There are separate rates payable for each child. The payment can be claimed by anyone who qualifies, whatever their income or savings.

If you're responsible for a child, you can normally get Child Benefit for them - even if you're not their parent.

You can get Child Benefit even if your child doesn't live with you, as long as:

• you pay towards their upkeep

• what you pay is at least the same as the amount of Child Benefit

• the person your child lives with is not getting Child Benefit for them

If you and another person both claim Child Benefit for the same child, only one of you can get it.

Child Benefit payments usually stop when your child reaches 16, unless they are in education or training that counts for Child Benefit. For example, an advanced course at higher education level - such as a degree - doesn't count.

You can't get Child Benefit for your child once they reach the age of 20.

There are two separate amounts, with a higher amount for your eldest (or only) child. You get £20.30 a week for your eldest child and £13.40 a week for each of your other children.