Note: The figures in this table for April 2020/21 include the increase of £1,040 in the Working Tax Credit basic element which was announced by the government in response to Covid-19 on 23 March 2020. The temporary increase will end on 5 April 2021 and will be replaced with a one-off extra payment of £500 for people who were eligible for Working Tax Credit on 2 March 2021. As this is a one-off payment it is not reflected in the below table for April 2021/22.
Rates of tax credits, income thresholds and withdrawal rates
|April 2020/21||April 2021/22|
|Child Tax Credit family element||£545* (only where there is a child born before 6 April 2017)||£545* (only where there is a child born before 6 April 2017)|
|Disabled child element||£3,415||£3,435|
|Severely disabled child element||£4,800||£4,825|
Working Tax Credit basic element||£3,040||£2,005|
|Couple/lone parent element||£2,045||£2,060|
|30 hour element||£825||£830|
|Disabled worker element||£3,220||£3,240|
|Severe disability element||£1,390||£1,400|
|Childcare element of Working Tax Credit: maximum eligible cost for one child||£175 per week||£175 per week|
|Maximum eligible childcare cost for two or more children||£300 per week||£300 per week|
|Percentage of eligible childcare costs covered||70%||70%|
|Tax credit income thresholds and withdrawal rates|
|Threshold for maximum Child Tax Credit where neither partner meets conditions for Working Tax Credit||£16,385||£16,480|
|Income threshold for families who meet conditions for both tax credits||£6,530||£6,565|
|Withdrawal rate (this is the percentage of your income ABOVE the threshold which is taken off your tax credit award)||41%||41%|
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