Child Tax Credit

Child Tax Credit is a legacy benefit that provides extra money for families with children. It is based on your household income and the number of children you have. Child Tax Credit has been replaced by Universal Credit for most new claimants, but millions of families continue to receive it.

Child Tax Credit is made up of a family element and a child element for each qualifying child. The amounts reduce as your income increases above a threshold. Additional elements may be added if your child has a disability or severe disability. The benefit is administered by HMRC (not the DWP) and is renewed annually.

If you are already receiving Child Tax Credit, you can continue to do so until you are migrated to Universal Credit through the managed migration process. During this transition, transitional protection means you should not receive less than you were getting under the old system. A change in your circumstances (such as a new partner moving in or a significant income change) may trigger a move to Universal Credit sooner.

For new claims, families should apply for Universal Credit instead, which includes a child element that serves a similar purpose. If you receive Child Tax Credit with a household income below £16,190 per year, your children may also qualify for Free School Meals.