Tax credit and child benefit claimants to get hundreds more as benefits boosted from April

BRITS who claim tax credits or child benefit are set to get a payment boost worth hundreds of pounds this year.

Benefits will rise when the new financial year begins in April – we explain how much you could get.

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There’s a 3.1% annual benefits increase, which was announced in November 2021 based on the previous month’s inflation rate.

Universal Credit is rising too, with the standard allowance rising by £10.07 a month from £257.33 to £265.31 for those single and aged 25 and over.

But the boost comes as the cost of living has soared, with higher prices in shops and sky-high energy bills.

Inflation hit a 30-year high of 5.4% earlier this month and is expected to reach 6% by spring.

National insurance tax is also set to rise in April, and many Brits are facing higher council tax bills.

Salman Haqqi, personal finance expert at Money.co.uk, said: “It’s worth noting that this increase in rates is not necessarily in proportion to the current rise in the cost of living, nor the huge spike in inflation, which has risen to its highest point since the 1980s.”

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The government has recently revealed how much child benefit, working tax credits and child tax credits will increase – we explain.

How much extra child benefit will I get?

Child benefit claimants currently get £21.15 a week for the eldest, or only, child, and then £14 for each additional child.

From April, that will rise to £21.80 and £14.45 respectively – tThat’s an extra £33.80 and £23.40 a year for each rate.

For example, family with three children would benefit from a boost of more than £90 a year.

You can claim child benefit if you live in the UK and you have children under the age of 16.

You can continue to claim until they’re 20 if they continue in approved training or education.

Anyone who is responsible for a child can get the financial support, you don’t have to be their biological parent.

You’re considered responsible if you live with them or you’re spending at least the same amount as the child benefits are worth on looking after them.

The eligibility will change if a child goes into hospital or if they move in with someone else.

You can’t get the full amount of child benefit if you earn over £50,000 and you won’t get anything if your salary is £60,000 or more.

Tax credits

You can’t apply for tax credits anymore as they’re a legacy benefit and have been replaced by Universal Credit for new claimants.

The only exception is if you currently claim either working tax credit or child tax credit, you can then apply for the other one.

If you already get tax credits, you’ll get more money from April this year.

The basic element of working tax credit will jump from £2,005 a year to £2,070 a year – an increase of £65.

Child tax credit is jumping to £2,935, up from £2,845 – a £90 hike.

Meanwhile, parents with disabled children can get up to £3,545.

As tax credits are left over from the old welfare system, you can’t claim them at the same time as Universal Credit.

Your tax credits will stop if you or your partner apply for Universal Credit, so you should work out which is a better option for your finances before swapping.

Research how tax credits and Universal Credit affect each other before making a decision.

This post first appeared on thesun.co.uk