The Tax Credits and Guardian’s Allowance Up-rating etc. Regulations 2017

Madeat 11.30 on 15th March 2017

Coming into force in accordance with regulation 1(2)

Following a review under section 41(1) of the Tax Credits Act 20021 in the tax year 2016-17 of some of the amounts specified in section 41(2) of that Act, the Treasury have determined that Regulations should be made prescribing increases in some of those amounts.

Following a review of the sums specified in section 150(1)(a)(i) of the Social Security Administration Act 19922 (“the Great Britain Administration Act”) in the tax year 2016-17, the Treasury have determined that the general level of prices in Great Britain is greater at the end of the period under review than it was at the beginning. These Regulations make provision under section 150 of the Great Britain Administration Act, and make corresponding provision for Northern Ireland in accordance with section 132(1) of the Social Security Administration (Northern Ireland) Act 19923 (“the Northern Ireland Administration Act”).

A draft of these Regulations was laid before Parliament in accordance with section 66(1) and (2)(a) of the Tax Credits Act 2002, sections 150(2)(a) and 190(1) of the Great Britain Administration Act, and section 166(10A)4 of the Northern Ireland Administration Act, and approved by a resolution of each House of Parliament.

The Treasury make the following Regulations in the exercise of the powers conferred by sections 9, 11, 65(1) and 67 of the Tax Credits Act 20025, sections 150(2)(a), (5), (9), and (10)(a)(i) of the Great Britain Administration Act6, and sections 132(1) of the Northern Ireland Administration Act and now exercisable by them.

Citation, commencement and effect1.

(1)

These Regulations may be cited as the Tax Credits and Guardian’s Allowance Up-rating etc. Regulations 2017.

(2)

These Regulations come into force on 6th April 2017 except for regulations 4 and 5 which come into force on 10th April 2017.

(3)

Regulations 2 and 3 have effect in relation to awards of tax credits for the tax year beginning on 6th April 2017 and subsequent tax years.

Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 20022.

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 20027 is amended as follows—

(a)

in item 2 (disability element), in the second column for “£2,970” substitute “£3,000”; and

(b)

in item 6 (severe disability element), in the second column for “£1,275” substitute “£1,290”.

Amendment of the Child Tax Credit Regulations 20023.

In regulation 7 (determination of the maximum rate at which a person or persons may be entitled to child tax credit) of the Child Tax Credit Regulations 20028, after paragraph (4) insert—

“(5)
The disability element of child tax credit—
(a)
where the child or qualifying young person is disabled, is £3,175;
(b)
where the child or qualifying young person is severely disabled, is £4,465.”.

Amendment of Schedule 4 to the Social Security Contributions and Benefits Act 19924.

In paragraph 5 of Part 3 of Schedule 4 to the Social Security Contributions and Benefits Act 19929 (weekly rate of guardian’s allowance) for “£16.55” substitute “£16.70”.

Amendment of Schedule 4 to the Social Security Contributions and Benefits (Northern Ireland) Act 19925.

In paragraph 5 of Part 3 of Schedule 4 to the Social Security Contributions and Benefits (Northern Ireland) Act 199210 (weekly rate of guardian’s allowance) for “£16.55” substitute “£16.70”.

David Evennett

Andrew Griffiths

Two of the Lords Commissioners of Her Majesty’s Treasury

At 11.30 on 15th March 2017

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005); the Child Tax Credit Regulations 2002 (S.I. 2002/2007); the Social Security Contributions and Benefits Act 1992 (c. 4); and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7).

Regulation 2 increases the maximum rate of the disabled and severely disabled elements of working tax credit from £2,970 and £1,275 to £3,000 and £1,290 respectively.

Regulation 3 sets the rate of the new disability element of child tax credit at £3,175 for a disabled child or qualifying young person and £4,465 for a severely disabled child or qualifying young person. The new disability element was introduced by the amendment of the Child Tax Credit Regulations 2002 by the Child Tax Credit (Amendment) Regulations 2017 (S.I. 2017/387).

Regulations 4 and 5 increase the weekly rate of guardian’s allowance from £16.55 to £16.70.

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