Campaign Reply - Tax Credits

Thank you for contacting me about Tax Credits.

Tax Credits have been replaced by Universal Credit. It is no longer possible to make a new claim for Tax Credits. However, existing Tax Credit claimants can continue to renew their Tax Credits and add additional elements to their claim.

There are two types of Tax Credit - Child Tax Credit and Working Tax Credit. There are different qualifying conditions for each. Working Tax Credit is paid to those who are employed and on a low income. To be eligible, claimants must be between the age of sixteen and the State Pension age. Child Tax Credit is paid to people who have children. It is paid in addition to child benefit.

While I note your concerns about eligibility requirements for Tax Credits, I understand that Pension Credit can provide those over the State Pension Age with payments to assist with their living costs. Pension Credit can also help with housing costs such as ground rent or service charges.

In April 2023, the standard minimum income guarantee in Pension Credit was increased by 10.1 per cent, in line with inflation. As a result, Pension Credit can top up a claimant's weekly income to £201.05 if they are single, or their joint weekly income to £306.85 if they have a partner. In April 2024, the Pension Credit standard minimum guarantee will rise by 8.5 per cent, in line with average earnings growth.

Claimants of Pension Credit can also access other support including Housing Benefit, free TV licences for the over-75s, and the Warm Homes Discount. Full information is available here: https://www.gov.uk/pension-credit.