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Tax Credits, Child Benefit and Guardian’s Allowance Update

25 November 2020

Proposing MP
Steve Barclay Con
North East Cambridgeshire
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

Issue Summary

This statement addresses updates to tax credits, Child Benefit, and Guardian’s Allowance rates and thresholds.

Action Requested

The government will increase most tax credits rates and thresholds from April 2021 and raise the Child Benefit and Guardian's Allowance in line with September 2020 CPI. The full list of proposed benefit rates will be placed in the Libraries of the House shortly.

Key Facts

  • Tax credits rates and thresholds will increase from April 2021.
  • Child Benefit and Guardian’s Allowance rates will rise in line with the September 2020 Consumer Price Index (CPI).
  • The annual uprating for tax credits will begin on 6 April 2021, while for Child Benefit and Guardian’s Allowance it will be 12 April 2021.
  • CPI has been used as the default inflation measure since 2011.
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