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2 child limit
i haven’t research this, but can anyone tell me what other change of circumstances, other than new births and new claims, will trigger the 2 child limit to apply after April, for CTC
Hi David
Section 13 of the Welfare Reform Act, as applies to child tax credit, refers to new babies born on or after 6 April 2017 only:
“(3A) Subsection (3B) applies in the case of a person or persons entitled to child tax credit where the person is, or either or both of them is or are, responsible for a child or qualifying young person born on or after 6 April 2017.
(3B) The prescribed manner of determination in relation to the person or persons must not include an individual element of child tax credit in respect of the child or qualifying young person unless—
(a) he is (or they are) claiming the individual element of child tax credit for no more than one other child or qualifying young person, or
(b) a prescribed exception applies.”
Section 14 refers to universal credit, and was intended to apply to new claims made on or after 6 April 2017, but this has been delayed according to Damian Green’s announcement last week:
“Therefore, we will direct new claims from families with more than two children to Tax Credits until November 2018. Thereafter, new claims from families with more than two children will be taken through Universal Credit. Families already on Universal Credit who have a third child after April 2017 will remain on Universal Credit and receive two child elements.”
The other change that will be affected by the policy will be new claims from ‘blended’ families. For example, two lone parents get together and form a couple. They each have two children from previous relationships, one of whom born after 6 April 2017. If they get together after April 2017 and make a couple claim with four children, they will only receive CTC for the children born before 6 April 2017 - unless this is to be one of the prescribed exceptions.
Mark
Hi Mark, thanks. So to clarify, it’s new births only that will trigger the limit after April? Those who find themselves making a new claim, with more than 2 children, born before April, claiming after April, will be exempt?
Hi David
Yes, that’s how I read it, as applies to child tax credit.
The rule for universal credit is about new claims with three or more children, regardless of date of birth, but following this announcement it seems they will be directed to child tax credit instead.
Mark
How will this impact disabled children born post change in rules
Hi Daimo65
They will be affected under section 13 of the Welfare Reform and Work Act, if a disabled child born on or after 6 April 2017 is the third or subsequent child.
What is commonly known as the child element will not be payable (£2,780) but the disabled child element (£3,140) and severely disabled child element (£1,275) will still be payable if the conditions are met.
Technically, the current rules refer to a child element, payable at different rates if the child is disabled or severely disabled, but it will become a separate ‘disability element’ of child tax credit.
... (b) at the end insert “, and (c) an element which is to be included in the case of a child or qualifying young person who is disabled or severely disabled.”
(3) In subsection (3), at the end insert “ and that specified in paragraph (c) of that subsection is to be known as the disability element of child tax credit ”.
Mark
Hi David
Yes, that’s how I read it, as applies to child tax credit.
The rule for universal credit is about new claims with three or more children, regardless of date of birth, but following this announcement it seems they will be directed to child tax credit instead.
Mark
Hi Mark
If they’re being directed to Tax Credits would that mean they can also claim the other ‘legacy benefits’? (HB etc)? I am thinking of those in full service UC areas.
Thanks
Clive
Hi David
Yes, that’s how I read it, as applies to child tax credit.
The rule for universal credit is about new claims with three or more children, regardless of date of birth, but following this announcement it seems they will be directed to child tax credit instead.
Mark
Hi Mark
If they’re being directed to Tax Credits would that mean they can also claim the other ‘legacy benefits’? (HB etc)? I am thinking of those in full service UC areas.
Thanks
Clive
Nothing’s certain but I think it’s most likely that all the legacy benefits (not just TCs) will remain for diverted claims.
If the UC IT is so sclerotic that it can’t handle the 2-child rule then it’s unlikely to be flexible enough to replace just some but not all legacy benefits. Also, there’s no direct mapping from WTC to UC elements and you’d need to do something about both tapers running in parallel.
One up-shot of the decision to divert these families away from UC is that DWP can avoid doing any of the initial dirty work on 2-child exemptions - that’s all going to be done by HMRC (and LAs, probably).
Thanks Jon
A DWP letter in July to LA’s says on this issue: paraphrasing - ’ this means we will leave open for them the ability to claim TC and HB’ and ‘in areas where access to HB and TC has been curtailed, because they have full service UC, we will lay regulations to re-open HB and TC for this limited group’
So still assume/guessing they mean other legacy benefits?
NB
should this thread be linked/merged with this one?
http://www.rightsnet.org.uk/forums/viewthread/10013/
Housing Benefit was expected to have the 2 child limit from next year too. Is this still to be effective? If so even if families can claim TC’s the HB will still be restricted. Any updates known?
Govt response to 2 child policy consultation (Jan 2017)
Only just starting to get my head round this change…
If a working claimant has a 3rd child after April 17 can they not get child care costs for that child even though no child care costs for the first 2 in payment?
Hi JoW
They can get childcare costs for the third or subsequent child. It is only the child element that is affected. They must still report the change of having a new baby - childcare costs are incurred and paid in respect of a child for whom the claimant is responsible. The WRAWA only refers to the child element not being payable. I fear a lot of claimants will lose out in this situation through lack of information on the rules.
Mark
Great thanks.