Tax credits

  2020/21 2019/20
Basic element £1,995 £1,960
Couple and lone parent element £2,045 £2,010
30-hour element1 £825 £810
Disabled worker element £3,220 £3,165
Severe disability element £1,390 £1,365
Maximum eligible cost for one child £175 p.w. £175 p.w.
Maximum eligible cost for two or more children £300 p.w. £300 p.w.
Percentage of eligible costs covered 70% 70%
Child tax credit family element £545 £545
Child element £2,830 £2,780
Income threshold £6,530 £6,420
Withdrawal rate 41% 41%
First threshold for those entitled to child tax credit only £16,385 £16,105
Income rise disregard £2,500 £2,500
Income fall disregard £2,500


Limit child element in tax credits and Universal Credit

The Child Element of tax credits and Universal Credit is no longer awarded for third and subsequent children born after 6 April 2017. Multiple births and other exceptional circumstances will be protected from the two children limit.

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