In this section:

Disability benefits - how do they affect tax credits payments?

If you're claiming disability benefits for yourself or your child, you may qualify for extra tax credits - on top of other benefits you're getting. Some disability benefits are also taken into account when the Tax Credit Office works out how much tax credits you’re entitled to.

On this page:

What are the benefits that can help you qualify for extra tax credits?

If you - or your partner - are working and have a disability

Certain sickness or disability-related benefits that you might get - or have recently have been getting - can help you qualify for extra Working Tax Credit. For example:

  • you could be getting a benefit such as Disability Living Allowance or Personal Independence Payment
  • you might recently have been getting a benefit like Incapacity Benefit or Employment and Support Allowance

For the full list of benefits, plus the other conditions you need to meet to qualify, follow the links immediately below.

You have a disability - can you get extra Working Tax Credit?
Find out more about other qualifying benefits if you have a disability (PDF 151K)

If you - or your partner - have a severe disability

You or your partner might get one of the following:

  • Highest Rate Care Component of Disability Living Allowance
  • Higher Rate of Attendance Allowance
  • Enhanced Daily Living Component of Personal Independence Payment

If so, you may qualify for a further amount of Working Tax Credit because of your severe disability. In a couple, the person with the severe disability doesn’t have to be working - as long as one of you is.

You have a disability - can you get extra Working Tax Credit?

If your child has a disability

You can get extra Child Tax Credit if one of the following benefits is paid for your child:

  • Disability Living Allowance
  • Personal Independence Payment

This still applies even if the allowance or payment has stopped because your child is in hospital.

You can also get extra Child Tax Credit if your child is registered blind.

You have a child with a disability - can you get extra Child Tax Credit?

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How much extra tax credits can you get?

In this tax year (6 April 2013 to 5 April 2014), on top of your basic tax credits you could get:

  • up to £2,855 a year, that is around £55 a week, if you are disabled
  • up to £4,075 a year, that is around £78 a week, if you are severely disabled
  • £3,015 a year, that is around £58 a week, if your child is disabled
  • £4,235 a year, that is around £81 a week, if your child is severely disabled

The amount of tax credits you are paid depends on other income you have coming in. The higher your income, the lower your tax credits payments.

To find out more about how much you might get, use the online calculator, or call the Tax Credit Helpline.

Find out how much you can get using an online tax credits calculator

Contact details for the Tax Credit Helpline

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Disability benefits that count as income for tax credits

When you make a claim for tax credits your income is worked out by adding together things like wages, interest on savings and some benefits. Some types of disability benefit count towards your income and others don't.

Disability benefits that don't count towards your income

These benefits don't count towards your income when your tax credits are worked out:

  • Disability Living Allowance
  • Attendance Allowance
  • Personal Independence Payment
  • Incapacity Benefit (at the short term lower rate paid for the first 28 weeks)
  • Incapacity Benefit - if you claimed it before 1995 and have received it ever since
  • income-related Employment and Support Allowance
  • Severe Disablement Allowance
  • Industrial Injuries Disablement Benefit

Disability benefits that do count towards your income

These benefits do count towards your income when your tax credits are worked out:

  • Incapacity Benefit paid at short term higher or long term rates - 29 weeks or more
  • contribution-based Employment and Support Allowance
  • Carer's Allowance – including any dependency increases

More about which state benefits you need to report when making a tax credits claim

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Benefits that might be reduced if you start getting tax credits

Disability benefits like Disability Living Allowance, Personal Independence Payment and Incapacity Benefit won't be reduced when you start getting tax credits.

Other benefits you or your partner might be getting, such as Carer's Allowance, should not be affected by your tax credits.

However, some benefits, for example Housing Benefit or Income Support, may be reduced if your income goes up. You will need to report any increase in your income to the offices that pay you these benefits when you start getting tax credits.

Find out which other benefits are affected by tax credits

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More useful links

Changes that affect your tax credits
Benefits adviser for England, Scotland and Wales on GOV.UK - get an estimate of the benefits or credits you could get (Opens new window)
Benefits adviser for Northern Ireland on nidirect - get an estimate of the benefits or credits you could get (Opens new window)
Carers and Disability Benefits on GOV.UK (Opens new window)

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