Statement on Social Security Update by
The Tax Credits Act 2002 and the Social Security Administration
Act 1992 place a statutory duty on His Majesty’s Treasury to
review the rates of tax credits and Child Benefit each year in
line with the general level of prices. There is a further
statutory duty on the Treasury to increase Guardian’s Allowance
in line with price growth. I have now concluded the review for
the tax year 2024/25.
I have decided to increase tax credits and Child Benefit rates in
line with the Consumer Price Index (CPI) for the year to
September 2023. Guardian’s Allowance will also increase by the
same rate. This means that:
- The majority of elements and thresholds in Working Tax Credit
and Child Tax Credit, including all disability elements, will
increase by 6.7% from 6 April 2024. This means, for example, that
the basic element of Working Tax Credit will increase from £2,280
to £2,435 per year. In line with established practice and the
Office for Budget Responsibility’s expectations in their welfare
forecast, the maximum rate of the childcare element, the family
element, the withdrawal rate and disregards in tax credits will
remain unchanged.
- All rates of Child Benefit, plus Guardian’s Allowance, will
increase by 6.7% from 8 April 2024. This means, for example, that
the Child Benefit rate for the eldest child will increase from
£24.00 to £25.60 per week.
The new rates will apply across the United Kingdom. I will
deposit the full list of these rates in the House libraries
shortly.
