What is Child Tax Credit?

Full Definition

Child Tax Credit was a means-tested benefit, introduced in 2003, that provided extra income to families responsible for at least one child or qualifying young person, payable whether or not the claimant was in paid work (unlike Working Tax Credit, which required minimum working hours), with the amount depending on the number of children, whether any had a disability, and household income. Like Working Tax Credit, it was progressively phased out and replaced by Universal Credit, which folded support for children into a single combined monthly award alongside other elements such as housing costs and, where relevant, limited capability for work; all remaining Child Tax Credit claimants were moved across to Universal Credit (or Pension Credit, for some older claimants) as part of the government's managed migration process, and Child Tax Credit is no longer paid to anyone or available as a new claim. Families who were previously affected by the two-child limit under Child Tax Credit should be aware that a broadly similar two-child limit continues to apply within Universal Credit for most children born after April 2017, so moving between the two systems did not generally remove that restriction, and current, detailed eligibility rules for children under Universal Credit should always be checked on gov.uk rather than assumed to mirror the old tax credit rules exactly.

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