The Tax Credits, Child Benefit and Guardian’s Allowance Uprating Regulations 2023 (SI 2023/237) were made on 1 March 2023 and come into force partly on 6 April and partly on 10 April 2023.
The main impact of the regulations is summarised in the accompanying Explanatory Notes as follows (with bold added here for greater clarity):
“What is being done and why?
7.1 Following the reviews of tax credits, Child Benefit and Guardian’s Allowance, the Treasury has determined that the overall level of prices has increased by 10.1% as measured by the change in CPI from September 2021 to September 2022.
7.2 These regulations increase rates of certain elements of Child Tax Credit and Working Tax Credit by 10.1% rounded up to the nearest £5.00.
7.3 This means that the annual rates of Working Tax Credit elements will increase from 6 April 2023 as follows: the basic element will increase from £2,070 to £2,280; the couple and lone parent element will increase from £2,125 to £2,340; the 30-hour element will increase from £860 to £950; the disabled worker element will increase from £3,345 to £3,685; the severe disability element will increase from £1,445 to £1,595.
7.4 The annual rates of Child Tax Credit elements will increase from 6 April 2023 as follows: the child element will increase from £2,935 to £3,235; the disabled child rate will increase from £3,545 to £3,905; the severely disabled child rate will increase from £4,975 to £5,480.
7.5 The Working Tax Credit income threshold will increase from £6,770 to £7,455.
7.6 The income threshold for those entitled to Child Tax Credit only will increase from £17,005 to £18,725. The calculation of this figure depends on other rounded elements.
7.7 The regulations increase the weekly rate of Child Benefit by 10.1%, rounded to the nearest 5 pence. This means that, from 10 April 2023, the weekly rate for the eldest child will increase from £21.80 to £24.00, and the rate for any subsequent children will increase from £14.45 to £15.90.
7.8 The regulations increase the weekly rate of Guardian’s Allowance by 10.1% rounded to the nearest 5 pence. This means that, from 10 April 2023, the weekly rate of Guardian’s Allowance will increase from £18.55 to £20.40.”