Explanatory note

This Order amends article 2 of the Tax Credits Act 2002 (Commencement No. 4, Transitional Provisions and Savings) Order 2003 (S.I. 2003/962) by revoking article 2(5). Article 2(5) of S.I. 2003/962 brings into force section 1(3)(d) of the Tax Credits Act 2002 (c. 21), which abolishes the child premia in respect of income support and income-based jobseeker’s allowance that are being replaced by child tax credits, on 31st December 2014. The revocation of article 2(5) ensures that those benefits will continue after 31st December 2014 until such time as they are subsequently abolished.

This Order also makes a corresponding amendment to article 3 of the Tax Credits Act 2002 (Transitional Provisions) Order 2010 (S.I. 2010/644) by revoking article 3(3) and its reference to 31st December 2014. Article 3, as amended, will continue to ensure that new claimants for child tax credits can only have their claim backdated under regulation 7 of the Tax Credits (Claims and Notifications) Regulations 2002 (S.I. 2002/2014) from a date when they were not otherwise entitled to the child premia in respect of income support and income-based jobseeker’s allowance thereby avoiding overlapping of entitlements.

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