Tax Credits & Universal Credit

WORKING TAX CREDITS (WTC)	2025/26	2024/25	Notes
Basic element per year	Tax credits end on 5.4.2025 and are replaced by Universal Credit or pension credit details in link below- see link	£2,435	This is the basic maximum payment per year if you qualify.
Couple and single parent element per year - up to		£2,500	Paid on top of basic element if you make a joint claim or are a single parent bringing up children.
You work at least 30 hours per week - up to		£1,015
You have a disability - element up to		£3,935
You have a severe disability - element up to		£1,705	Usually on top of disability payment
Childcare element - max eligible cost - 1 child		£175 p.w.	This is an extra payment if you are paying for childcare - 70% of costs per week up to the maximum.
Childcare element - max eligible cost - 2 children+		£300 p.w.
WTC threshold		£7,955	If income above this, WTC is reduced

CHILD TAX CREDITS (CTC)	2025/26	2024/25	Notes
Family element per year - The basic payment if you are responsible for 1 or more children.	As above	£545	You only get this IF one of your children was born before 6.4.2017.
Child element per year	As above	£3,455	This is paid on top of the family element - but see notes below.
1. If all your children were born before 6.4.2017 and you are an existing claimant, you get the child element for each child. 2. If you have another child on or after 6.4.2017 you get the child element only if they are the second child - exceptions apply. 3. If your claim started on or after 6.4.2017 you get the child element for up to 2 children - exceptions apply.
Disabled child element per year - an extra payment for each disabled child you have.	As above	£4,170	Child element rules above apply
Severely disabled child element - an extra payment for each severely disabled child you have.		£1,680	Child element rules above apply.
CTC threshold		£19,995	CTC is reduced if income is above this

CHILD BENEFIT	2025/26	2024/25	Notes
Eldest or only child - per week	£26.05	£25.60	This is worth about £1,355
Other children - per week	£17.25	£16.95	This worth about £897 per year.
Child benefit will be withdrawn through an income tax charge in households where someone has an income of between £50K-£60K in 2023/24. From 2024/25 this will apply to income between £60K-£80K. So, in 2023/24, child benefit is clawed back fully once income reaches £60K (£80K in 2024/25). Details

GUARDIANS ALLOWANCE	2025/26	2024/25	Notes
Guardians allowance - per week	£22.10	£21.75	Bringing up a child where at least one parent is dead. Other detailed rules apply.

Tax credits are payments given by the Government. If you are responsible for at least one child or a young person who lives with you, you may qualify for Child Tax Credit (CTC). You do not have to be working to claim CTC.
If you are in work or self employed, but earn a low income, you may also qualify for Working Tax Credit (WTC) provided you are 16 or over or 25 or over if you don’t have children or a disability. You must work a certain number of hours to qualify and must be genuinely self-employed. Tax credits are being replaced by Universal Credits.
You can only make a NEW claim for WTC if you don’t live in a Universal Credit Area or you or your partner qualify for pension credits otherwise you apply for Universal Credit (UC) instead - rules are complex with different rates.
The amount of tax credits you get depends on new rules from 6.4.2017, your income and age, how many children live with you, if you live as a couple, number of hours worked and if you or any child living with you has a disability.
UNIVERSAL CREDIT - the detailed rates for these (and other benefits) from 6.4.2025 are in the link below.