Working Tax Credit

(asked on 1st November 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department plans to amend the existing work taper for Working Tax Credits in line with the changes to the earnings taper on universal credit.


Answered by
Simon Clarke Portrait
Simon Clarke
This question was answered on 8th November 2021

The changes to the Universal Credit (UC) taper rate and work allowances announced at Autumn Budget 2021 apply to UC only, and the withdrawal rate in tax credits will remain at 41 per cent.

It is possible for tax credits claimants to make a new UC claim to benefit from the changes to the taper rate and work allowances, if they wish, although the government would strongly encourage making use of an independent benefit calculator before applying, to check UC entitlement.

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