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The Child Benefit and Tax Credits Up-rating Order 2014

S.I. 2014/384 · Made 24 February 2014

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Social Security

Tax Credits

Made 24th February 2014

Coming into force

for the purposes of article 2 7th April 2014

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

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 1992f1 (“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 1992f2 (“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 2002f3, 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 2013f4 and under section 132(1) of the Northern Ireland Administration Act 1992f5.

Annotations to the whole text

Footnotes

f1

1992 c. 5.

f2

1992 c. 8. The functions of the Department for Social Development in respect of child benefit under section 132 of the Northern Ireland Administration Act 1992 (review and alteration of benefits: Northern Ireland) which are relevant to the making of this Order were transferred to the Treasury by section 49(4) of the Tax Credits Act 2002 (c. 21)

f3

2002 c. 21.

f4

2013 c 16. Section 3(5) of the Welfare Benefits Up-rating Act 2013 provides that section 1(1) to (7) of, and paragraph 1 of the Schedule to, the Act extends to England and Wales and Scotland only. Section 1(7) provides that, for the purposes of Child Benefit, the obligation to make an order under section 1 falls on the Treasury.

f5

Section 1(8) of the Welfare Benefits Up-rating Act 2013, which extends to the United Kingdom by virtue of section 3(7), provides that a reference in any other enactment to an order under section 150 of the Great Britain Administration Act includes a reference to an order made under section 1. Section 1(9) provides that nothing in section 166 of the Northern Ireland Administration Act (control of orders and regulations) applies in relation to an order made by the Treasury under section 132 of that Act which corresponds to an order made under section 1.

Contents

  1. 1Citation and commencement
  2. 2Amendment of the Child Benefit (Rates) Regulations 2006
  3. 3Amendment of the Child Tax Credit Regulations 2002
  4. 4Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002
  5. Signature
  6. Explanatory note

1Citation and commencement

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.

2Amendment of the Child Benefit (Rates) Regulations 2006

In regulation 2(1) of the Child Benefit (Rates) Regulations 2006f1—

(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”.

3Amendment of the Child Tax Credit Regulations 2002

(1)

Regulation 7 of the Child Tax Credit Regulations 2002f1 (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”.

4Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002

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 2002f1 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”.

Signature

Stephen Crabb

David Evennett

Two of the Lords Commissioners of Her Majesty’s Treasury

24th February 2014

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.