A third child … Limits to Housing Benefit, Child Tax Credits and Universal Credit.

This change is important but rather technical. So although its not the best thing to do if you want to write beautifully, I’m just going to bullet point the whole post to try and keep it clear. I’m also going to miss out quite a bit of detail. So please consider this post a summary only! I can’t yet find a decent link to anything which meets all these three criteria: a) is completely up-to-date b) puts everything in one place and c) is completely official so I’m not linking to anything from here. I will try and put some links up when I find them. So bearing in mind that this is just a summary – here goes

  • First announced 2015, the Government expects it will ‘encourage parents to reflect carefully on their readiness to support an additional child’. (From DWP Impact Assessment July 2015)
  • From 6th April 2017 – you can no longer normally claim Child Tax Credits (CTC) for any third or subsequent child in a household born on or after the 6th April 2017.
  • These children will also be treated differently in the calculation of Housing Benefit (HB) meaning some HB claimants will receive a lower level of benefit.
  • However the changes to HB will not affect how we work out the size of the accommodation allowed for a household. So although some claimants will lose part of their HB entitlement, you will still be allowed the same number of rooms in your home as you were under the previous rules.
  • Any household with an affected child will not be able to make a new claim for Universal Credit (UC). They will instead have to claim the older ‘legacy’ benefits that existed before the introduction of UC.
  • There is a list of children who will be exempted – including children covered by certain types of care arrangements – some children from multiple births – children conceived as the result of a non-consensual sexual act, including rape – children adopted from local authority care – children who are the child of someone under 16 that the claimant is responsible for.
  • All decisions on whether a child should be exempt for the new rules will be made as a part of the calculation for CTC.
  • This means that Housing Benefit departments will not have to make their own decisions about whether to include these children fully in claims. Instead, they will simply follow the decision made in the CTC assessment. Any claimant dispute about whether a child should be included or not should be made to HMRC who award CTC.
  • If all your children were born before the cut-off date of 6th April 2017 and you have no further children, you simply won’t be affected.

Benefits in general is a very complex subject. For anyone who wants an idea of what benefits they can claim or how much they might be entitled to across the whole range of state benefits there are some very good online calculation tools. You can find links to these on gov.uk.

You can also use the Housing Benefit/Council Tax reduction calculator which is set into Sandwell’s own online benefit form. (You can use our calculator without having to complete the form, even though the first few pages for both are the same).






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