2014 No. 384

Social Security
Tax Credits

The Child Benefit and Tax Credits Up-rating Order 2014

Made

Coming into force

for the purposes of article 2

for the purposes of articles 3 and 4

Following a review in the tax year ending with 5th April 2014 of the sums specified in section 150(1)(i) of the Social Security Administration Act 19921 (“the Great Britain Administration Act”) (annual up-rating of benefits) the Treasury have determined that the general level of prices in Great Britain has increased by at least 1 per cent over the period under review.

Section 132(1) of the Social Security Administration (Northern Ireland) Act 19922 (“the Northern Ireland Administration Act”) provides that, whenever the Treasury make an Order under section 150 of the Great Britain Administration Act, they may make corresponding provision in respect of Northern Ireland.

Following a review under section 41(1) in the tax year ending 5th April 2014 of the amounts specified in section 41(2) of the Tax Credits Act 20023, the Treasury have determined that the general level of prices in the United Kingdom has increased by at least 1 per cent over the period under review.

The Treasury make the following Order under section 1(1), (2), (3), (5) and (7) and section 2(1), (2), (3) and (4) of the Welfare Benefits Up-rating Act 20134 and under section 132(1) of the Northern Ireland Administration Act 19925.

Citation and commencement1

This Order may be cited as the Child Benefit and Tax Credits Up-rating Order 2014 and comes into force—

a

for the purposes of article 2 on 7th April 2014;

b

for the purposes of articles 3 and 4 on 6th April 2014.

Amendment of the Child Benefit (Rates) Regulations 20062

In regulation 2(1) of the Child Benefit (Rates) Regulations 20066—

a

in sub-paragraph (a)(enhanced rate), for “£20.30” substitute “£20.50”; and

b

in sub-paragraph (b)(other cases), for “£13.40” substitute “£13.55”.

Amendment of the Child Tax Credit Regulations 20023

1

Regulation 7 of the Child Tax Credit Regulations 20027 (determination of the maximum rate) is amended as follows.

2

In paragraph (4)—

a

in sub-paragraph (c) for “£2,720” substitute “£2,750”;

b

in sub-paragraph (f) for “£2,720” substitute “£2,750”.

Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 20024

The table in Schedule 2 (maximum rates of the elements of a working tax credit) to the Working Tax Credit (Entitlement and Maximum Rate) Regulations 20028 is amended as follows—

a

in item 1 (basic element), in the second column, for “£1,920” substitute “£1,940”;

b

in item 3 (30 hour element), in the second column, for “£790” substitute “£800”;

c

in item 4 (second adult element), in the second column, for “£1,970” substitute “£1,990”;

d

in item 5 (lone parent element), in the second column, for “£1,970” substitute “£1,990”.

Stephen CrabbDavid EvennettTwo of the Lords Commissioners of Her Majesty’s Treasury
EXPLANATORY NOTE

(This note is not part of the Order)

Article 2 increases the weekly rate of child benefit from £20.30 to £20.50 and from £13.40 to £13.55 (enhanced and other rate, respectively).

Article 3 increases the maximum rates of the child element of child tax credits (including qualifying young people) from £2,720 to £2,750.

Article 4 increases the maximum rates of the basic element, the 30 hour element, the second adult element and the lone parent element of working tax credits by one per cent (rounded up).

A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sector is foreseen.