Tax Credits - Effect on other benefits

Does claiming tax credits affect Housing Benefit / Council Tax Benefit

If you are on standard (ie means-tested) Housing Benefit or Council Tax Benefit, any tax credits you receive will be taken into account as income. The amount of benefit you receive will be reduced to reflect this additional income, though overall you will still be better off. You must tell the office dealing with your Housing Benefit or Council Tax Benefit claim each time you are sent an award notice so they can re-assess your benefits.

If you are on Income Support, Income Based Jobseekers Allowance or Pension Credit, you do not need to do anything now. The Department for Work and Pensions (DWP) (Department for Social Development (DSD) in Northern Ireland)) will be contacting you direct.

Does claiming tax credits affect my level of benefits

If you are already receiving:

• Income Support
• Income Based Jobseeker's Allowance
• Pension Credit

you do not need to claim Child Tax Credit now. The Department for Work and Pensions (DSD in Northern Ireland) will be contacting you direct to tell you what will be happening to these benefits and when it will happen.

If they have not already done so, they will send you a tax credit insert, which you need to read carefully. This will help you to understand how the tax credits will affect you and whether you will be better off. If, after reading this leaflet you are still not sure of your position, you need to contact your local DWP office (DSD in Northern Ireland) for more information.

If you do claim for tax credits, any payments you receive will be taken into account against your Income Support, Income Based Jobseeker's Allowance or Pension Credit and your benefit will be reduced. If your benefits are reduced to nil, you are automatically entitled to free school meals, Housing Benefit and some health benefits. You must tell DWP (DSD in Northern Ireland) if you are receiving tax credits.

If you are not on:

• Income Support
• Income Based Jobseeker's Allowance
• Pension Credit

but receive other benefits such as:

• Incapacity Benefit
• Bereavement Benefits
• Retirement Pension
• Invalid Care Allowance

they will not be affected by a claim for tax credits. However, the level of tax credits you receive could be affected by your receipt of these benefits. Your Child Benefit will not be affected.

Tax credits - other help you might qualify for if you get tax credits