If there’s a significant change in your circumstance, you’ll be asked to move from Child Tax Credit to Universal Credit.
This might happen if you:
- start work
- have a child
- move in with your partner or they move out.
You could get more or less money on Universal Credit than you’re currently getting in Child Tax Credit and other benefits.
The way savings are counted are different than the rules for tax credits. If you have savings of more than £16,000 you won't qualify for Universal Credit. And if you have savings of over £6,000 the amount you get could be affected. It's important to get specialist benefits advice before you claim Universal Credit if you think this will affect you.
If you have one or two children, you can claim for children until they reach 19 – or 20 in some cases – if they’re in full-time approved education or training, but not at university.
If your children were born before 6 April 2017, you’ll be able to claim for them all.
If one or more of your children were born on or after 6 April 2017, you’ll only be able to claim for the first two – unless you had a multiple birth or have adopted.
The first child premium will no longer be paid under Universal Credit.
Your monthly Universal Credit payment will include the elements and additions listed below, which will replace the help you currently get from tax credits:
- Child element – this helps with the costs of bringing up a child.
- Disabled child addition – this helps with the extra costs of bringing up a disabled child. It will be paid at either a lower or higher rate, depending on the child’s needs.
- Childcare costs element – lets you claim back up to 85% of your monthly registered childcare costs up to a capped limit of £646 for one child and £1,108 for two or more children (for 2022-23) while you’re working.
If you’re on Universal Credit, there are different rules about what you have to do in return for receiving your payment.