Tax credits income thresholds and universal credit
The tax credits income threshold will be reduced from £6,420
to £3,850 a year from April 2016. Work allowances in universal
credit will be abolished for childless claimants who are not
disabled and will be reduced for many other claimants.
Child element in tax credits and universal credit
The child element of tax credits and universal credit will no longer
be awarded for third and subsequent children born after 6 April
2017. This will also apply to families claiming universal credit for the
first time after April 2017. Transitional protections will be introduced
to cover children with disabilities, temporary claims interruptions,
multiple births and other special circumstances. Consequential
changes will be made in housing benefit from April 2017.
Income rise disregard in tax credits
From April 2016 there will be a reduction from £5,000 to £2,500
in the amount by which a claimant’s income can increase in-year
compared with their previous year’s income before their award is
adjusted (the ‘income rise disregard’).
Taper rates for tax credits
From April 2016 the tax credits taper rate will be increased from
41% to 48% of gross income.
Employment and support allowance
From April 2017 new claimants of employment and support
allowance who are placed in the work-related activity group will
receive the same rate of benefit as those claiming jobseeker’s
Tax credits, universal credit and housing benefit – first
From April 2017 the family element in tax credits and the
equivalent in universal credit will no longer be awarded when a
first child is born. Transitional protections will be introduced to
cover children with disabilities, temporary claims interruptions
and other special circumstances.
8 JULY 2015