From 5th October 1999, Family Credit will be replaced by Working Families’ Tax Credit.

What is Working Families Tax Credit?

It’s a payment to working families and middle incomes. The amount depends on your personal circumstances.

It will be calculated in a similar way to Family Credit, but it will be more generous in the following ways:

• the basic credit for each family will increase by £2.50 a week
• the credit for children under 11 will increase by £4.70 a week
• the amount of basic income each week eligible for maximum tax credit will increase by £9.35 to £90
• for every pound you get over £90 a week, 55p will be taken off your maximum tax credit (compared to every pound over £80.65 under Family Credit)
• if you receive maintenance payments they will not reduce your amount of your tax credit
• current childcare help will be replaced by a new childcare tax credit. This will help you with 70% of your eligible childcare costs up to maximum costs of £100 per week for one child and £150 per week for two or more children

If you are thinking of claiming Family Credit, you have a choice:

• you can put in a claim to Family Credit now

• you can wait until October and apply for Working Families’ Tax Credit

If you decide to claim Family Credit now:

• your claim will run for a full 26 weeks. You will not be able to get Working Families’ Tax Credit until your family credit runs out

If you decide to wait until October:

• you will not receive any Family Credit between now and October
• you will receive no payment of Working Families’ Tax Credit until a week after 5 October at the earliest
• if your circumstances change between now and 5th October, this may affect your entitlement to Working Families’ Tax Credit.
• You could get less than you expected, or nothing at all

It’s your decision.

It’s for every family to make their own decision. You will need to consider your circumstances carefully before deciding what is best for you.

If you want know more about Working Families’ Tax Credit, telephone the Helpline on 01253 500050

Whatever you decide:

Your decision may affect any entitlement to Housing Benefit and Council Tax Benefit, Social Fund, Maternity and Funeral payments, and other benefits such as free prescriptions, dentistry and eyesight tests. There may also be implications for your entitlement to National Insurance credits and to any enhanced "Additional Pension" (known as SERPS), which could affect your future pension entitlement.

Your local Benefits Agency office will be able to offer advice about Social Fund claims and retirement pension entitlement.
The Family Credit Helpline will be able to offer you more information about free prescriptions, dentistry and eyesight tests.
Highland Council will be able to offer advice about Housing Benefit and Council Tax Benefit.