Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department made of the effect of the additional earnings disregards for Housing Benefits on tax credits before introducing the increase in the disability element of working tax credits that came into effect in April 2020.

Section 41 of The Tax Credit Act 2002 requires Treasury ministers to undertake an annual review of the rates of Tax Credits and to consider whether they have retained their value.

The disabled worker element and severe disability element of Working Tax Credit were uprated by CPI for 2020/21 to £3,3220 and £1,390 respectively.

During the review of Tax Credit rates for 2020/21 no specific assessment was made of the effect of the Housing Benefit disregards when setting the disability element rates of Working Tax Credit.