The Child Benefit and Tax Credits Up-rating Order 2015

Made5th March 2015

Coming into force6th April 2015

Following a review in the tax year ending 5th April 2015 of the sums specified in section 150(1)(i) of the Social Security Administration Act 19921 (“the Great Britain Administration Act”) (annual up-rating of benefits) the Treasury have determined that the general level of prices in Great Britain has increased by at least 1 per cent over the period under review.

Section 132(1) of the Social Security Administration (Northern Ireland) Act 19922 (“the Northern Ireland Administration Act”) provides that, whenever the Treasury make an Order under section 150 of the Great Britain Administration Act, they may make corresponding provision in respect of Northern Ireland.

Following a review under section 41(1) of the Tax Credits Act 20023 in the tax year ending 5th April 2015 of the amounts specified in section 41(2) of that Act, the Treasury have determined that the general level of prices in the United Kingdom has increased by at least 1 per cent over the period under review.

The Treasury make the following Order under section 1(1), (2), (3) and (7), and section 2(1), (2) and (3) of the Welfare Benefits Up-rating Act 20134 and under section 132(1) of the Northern Ireland Administration Act 19925.

Citation and commencement1

This Order may be cited as the Child Benefit and Tax Credits Up-rating Order 2015 and comes into force on 6th April 2015.

Amendment of the Child Benefit (Rates) Regulations 20062

In regulation 2(1) of the Child Benefit (Rates) Regulations 20066—

a

in sub-paragraph (a) (enhanced rate), for “£20.50” substitute “£20.70”; and

b

in sub-paragraph (b) (other cases), for “£13.55” substitute “£13.70”.

Amendment of the Child Tax Credit Regulations 20023

1

Regulation 7 of the Child Tax Credit Regulations 20027 (determination of the maximum rate) is amended as follows.

2

In paragraph (4)—

a

in sub-paragraph (c) for “£2,750” substitute “£2,780”;

b

in sub-paragraph (f) for “£2,750” substitute “£2,780”.

Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 20024

The table in Schedule 2 (maximum rates of the elements of a working tax credit) to the Working Tax Credit (Entitlement and Maximum Rate) Regulations 20028 is amended as follows—

a

in item 1 (basic element), in the second column, for “£1,940” substitute “£1,960”;

b

in item 3 (30 hour element), in the second column, for “£800” substitute “£810”;

c

in item 4 (second adult element), in the second column, for “£1,990” substitute “£2,010”;

d

in item 5 (lone parent element), in the second column, for “£1,990” substitute “£2,010”.

Gavin BarwellDavid EvennettTwo of the Lords Commissioners of Her Majesty’s Treasury5th March 2015

EXPLANATORY NOTE

(This note is not part of the Order)

Article 2 increases the weekly rate of child benefit from £20.50 to £20.70 and from £13.55 to £13.70 (enhanced and other rate, respectively).

Article 3 increases the maximum rates of the child element of child tax credits (including qualifying young people) from £2,750 to £2,780.

Article 4 increases the maximum rates of the basic element, the 30 hour element, the second adult element and the lone parent element of working tax credits by one per cent (rounded up).

A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sector is foreseen.