The Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2022

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005); the Child Tax Credit Regulations 2002 (S.I. 2002/2007); the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 (S.I. 2002/2008); the Child Benefit (Rates) Regulations 2006 (S.I. 2006/965); the Social Security Contributions and Benefits Act 1992 (c. 4); and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7).

Regulation 2 increases the maximum rate of different elements of working tax credit. It increases the basic element from £2,005 to £2,070, the disability element from £3,240 to £3,345, the 30 hour element from £830 to £860, the second adult element and the lone parent element from £2,060 to £2,125, and the severe disability element from £1,400 to £1,445.

Regulation 3 increases the maximum rate of different elements of child tax credit. It increases the individual element for a child or qualifying young person from £2,845 to £2,935. It increases the disability element from £3,435 to £3,545 for a disabled child or qualifying young person and from £4,825 to £4,975 for a severely disabled child or qualifying young person.

Regulation 4 increases the income threshold (the level of household income below which the full award is granted) from £6,565 to £6,770 for working tax credit and from £16,480 to £17,005 for child tax credit. It also amends the formulae to calculate the rates of working tax credit and child tax credit to account for the increase in the income thresholds.

Regulation 5 increases the weekly rate of child benefit from £21.15 to £21.80 (enhanced rate) and from £14.00 to £14.45 (other rate).

Regulations 6 and 7 increase the weekly rate of guardian’s allowance from £18.00 to £18.55.

The increase in the rates of child benefit and guardian’s allowance take effect from the week beginning with the first Monday in the tax year 2022-2023. The increase in the rates of tax credits take effect from the start of the tax year 2022-2023.

In accordance with section 150(8) of the Social Security Administration Act, a copy of the report of the Government Actuary giving his opinion on the likely effect on the National Insurance Fund of the making of this Order (in relation to the increases made to guardian’s allowance) was laid before Parliament with the draft Order.

A full impact assessment has not been produced for this instrument as no impact on the private, voluntary or public sectors is foreseen.