Welfare State: Reform

(asked on 27th May 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many households in (a) Cynon Valley and (b) Wales have been affected by the loss of the child element of child tax credit and universal credit for a third or later child born on or after 6 April 2017 as a result of not meeting any listed exceptions; and how much money those affected households have not been entitled to as a result of the social security changes that took place on 6 April 2017 for the tax year 2019-20.


Answered by
Steve Barclay Portrait
Steve Barclay
Secretary of State for Environment, Food and Rural Affairs
This question was answered on 7th June 2021

The government has committed to annual statistics releases related to the operation of the policy to provide support for a maximum of two children. Statistics related to the period up to April 2020 were published in July 2020.

Table 5 shows that as at April 2020, across Child Tax Credit and Universal Credit, 11,320 households in Wales had reported a third or subsequent child on or after 6 April 2017 and were not receiving a child element/amount.

On Universal Credit there were 130 households in Cynon Valley reporting a third or subsequent child on or after 6 April 2017 and not receiving a child element/amount in April 2020. This data is for households that had an open UC claim in April 2020, and so will have been included in the 2020 publication "Child Tax Credit and Universal Credit claimants: Statistics related to the policy to provide support for a maximum of two children".

Information on the number of households in Cynon Valley on tax credits reporting a third or subsequent child on or after 6 April 2017 and not receiving a child element/amount in April 2020 is not readily available.

An estimate of the total tax credits entitlement foregone as a result of the changes on 6 April 2017 is not available for 2019-20 until tax credits finalised awards data for that year has been processed, which is expected to be completed by summer 2021.

As households on Universal Credit would be affected differently by their individual circumstances, an estimate of the amount of money those affected households would not have been entitled to is not available. On average, if there were no other circumstances impacting the amount received, most households would not be entitled to the £237.08 per month child element for the third or subsequent child.

Reticulating Splines