A family on legacy benefits have 3rd child on or after 6 April 2017
A new claim for HB and Tax Credits after April 2017 from a family with three teenage children
Steve and Sue have two children and their third is born on 16th May 2017. They are in receipt of Working Tax Credit and Child Tax Credit as Steve works 25 hours per week on a low wage. However, they will not get any extra Child Tax Credit, and no extra child allowance in their HB award as their third child was born on or after 6 April 2017. The only increase in their income they will see is extra Child Benefit.
NOTE 1: If they are paying child care costs for their third child they can still receive help with these in their Tax Credits and HB.
NOTE 2: If their third child is awarded DLA, or is severely sight impaired or blind, they will be entitled to a disabled child element in their Child Tax Credit and a disabled child premium in their HB.
(The new two child limit rules makes them £53.46 a week / £2780.00 per annum worse off than had their third child been born before 6th April 2016).
A family on Universal Credit having their third child on or after 6 April 2017
Josh and Rachel have three teenage boys. They make a new claim for Tax Credits and Housing Benefit in June 2017 as Josh has lost his job and Rachel only works part-time. When their awards are assessed they will get three child elements in their Tax Credits and three child allowances in their Housing Benefit, as their children were all born before 6th April 2017.
Iman and Steve have two children age 3 and 5. They have been claiming Universal Credit since summer 2016 and are expecting their third child in late May 2017. After the birth of their third child their Universal Credit will not increase (unless they are paying for eligible child care for the third child and / or in receipt of Disability Living Allowance for the third child and / or third child severely sight impaired or blind), ie. the assessment will only include two child elements. But their Child Benefit will increase accordingly.
A family making a new claim for UC on or after April 2017 with three children already (all born before 6th April), so are redirected to legacy benefits instead
Alison and Jane have three children and live in a ‘Full’/Digital service area. They attempt to make a claim for UC following a reduction in earnings in May 2017. However, as they have three children, they are ‘directed’* to legacy benefits instead. They make a claim for Tax Credits and this is awarded and includes three child elements as all their children were born before April 2017.
* Families with three or more children will not be able to
make a new claim for Universal Credit between 6th April 2017 and
November 2018 – even in ‘Full’/Digital areas. From November 2018 this will
change as new claims for Tax Credits will be turned off and claims for
Universal Credit from families with three or more children will be allowed –
but limited to two child elements regardless of when the child is born.
looking to the future...
Mo and Louise have three children age 16, 13, and 7. They make a new claim for UC in December 2018. Even though all three children were born before 6th April 2017 the rules under UC mean that they will only have two child elements included in their UC award. Ie under UC it doesn’t matter when a child is born, they will only receive the two child elements.
Multiple births on or after 6 April 2017
Anthony and Claire receive Tax Credits and have twin boys. In May 2017 Claire gives birth to their third child. As they have had a third child on or after 6th April 2017, they will not receive an additional Child Element for her. However, if Anthony and Claire were parents of one child then had twins on or after April 2017, they would receive child three elements in their Child Tax Credit (and three child allowances in their HB).
Salma and Mo receive Universal Credit and have two boys. In August 2017 Salma gives birth to triplets. As they already have two child elements included in their award, they do not receive a child element for the first born triplet but do receive additional child elements for the other triplets – meaning four child elements in total
Adoption on or after 6th April 2017
Wendy gets Jobseekers Allowance, Child Tax Credit, Housing Benefit and Child Benefit for herself and her two children. In July 2017 she adopts a child. As adopted children are exempt from the two child rules limit Wendy’s Child Tax Credit increases as a third child element can be included.
Joyce and Tony have two children and are in receipt of Child Tax Credit. In May 2017 they have their third child. Although their Child Benefit increases, they are not entitled to an extra child element in their Child Tax Credit. In December 2017 they adopt a brother and sister. As adopted children are excluded from the two child limit their Child Tax Credit will increase as two child elements will be included in the award giving a total of four child elements.
Birth as a result on non-consensual sex
Kelly has three children and receives Jobseekers Allowance, Child Tax Credit, Housing Benefit and Child Benefit. Her fourth child is born in June 2017, as her social worker can confirm that this birth was the result of Kelly being coerced into having sex with her ex-partner who she is no longer living with, her Child Tax Credit can include a child element for this child.
Two families coming together – neither on Universal Credit
Iona is a single parent with two children one born before April 2017 and the other after – she gets Income Support, Child Tax Credit, Housing Benefit and Child Benefit. She is moving in with Max who has two teenage daughters. Max works – although on a low wage and gets Tax Credits.
Both Iona’s and Max’s Tax Credit’s would stop - becoming a couple (or a couple separating) triggers the end to an existing Tax Credit claim meaning a new claim is needed under their new circumstances.
So they need to make a new claim for Tax Credits (if they live in a ‘Full’/Digital Service area this would normally mean having to claim UC instead but as they have three or more children families in this situation will be directed to claim Tax Credits – this will continue up to November 2018).
As three of the four children were born before 6th April 2017 the Tax Credit award would include three child elements. But as Iona’s youngest was born on or after 6th April 2017 and there are already two or more child elements included in the award of Tax Credits, no fourth child element will be included.