Social Security Changes 2020 - 2021

Thursday 09 April, 2020 Written by Simon Collyer

BENEFITS CHANGES - Please note these changes to social security benefits.

Working Tax Credit rates

The maximum annual Working Tax Credit rates are shown below.

Use the tax credits calculator to work out how much you could get.

Rates (£ per week)	2020 to 2021	2019 to 2020	2018 to 2019
Basic element	£3,040	£1,960	£1,960
Couple and lone parent element	£2,045	£2,010	£2,010
30 hour element	£825	£810	£810
Disabled worker element	£3,220	£3,165	£3,090
Severe disability element	£1,390	£1,365	£1,330

Childcare element of Working Tax Credit

The maximum weekly childcare costs you can claim for and percentage of costs covered are shown below.

Rates (£ per week)	2020 to 2021	2019 to 2020	2018 to 2019
Maximum eligible cost for 1 child	£175	£175	£175
Maximum eligible cost for 2 or more children	£300	£300	£300
Percentage of eligible costs covered	70%	70%	70%

Child Tax Credit rates

The maximum annual Child Tax Credit rates are shown below.

Rates (£ per week)	2020 to 2021	2019 to 2020	2018 to 2019
Child Tax Credit family element	£545	£545	£545
Child element	£2,830	£2,780	£2,780
Disabled child element	£3,415	£3,355	£3,275
Severely disabled child element	£1,385	£1,360	£1,325

Tax credits income thresholds and withdrawal rates

The annual tax credits income thresholds and withdrawal rates are shown below.

Rates (£ per week)	2020 to 2021	2019 to 2020	2018 to 2019
Income threshold	£6,530	£6,420	£6,420
Withdrawal threshold rate (%)	41%	41%	41%
Threshold for those entitled to Child Tax Credit only	£16,385	£16,105	£16,105
Income rise disregard	£2,500	£2,500	£2,500
Income fall disregard	£2,500	£2,500	£2,500