Maternity Action Information Sheet 1 April 2019

Benefit rates 2019-2020

This information sheet gives the benefits, tax credits and rates that apply from 6th April 2019 to 5th April 2020. Most rates have not increased in 2019/20. This is an abridged list, produced to accompany Maternity Action information sheets. For more information on maternity pay and benefits go to www.maternityaction.org.uk

For a complete list of benefit rates, go to www.gov.uk/government/publications/benefit-and-pension- rates-2019-to-2020

If you are currently claiming tax credits or other benefits get advice before claiming Universal Credit. Once you make a claim for Universal Credit your existing benefits and/or tax credits will stop and you may be worse off on Universal Credit. You can find an online calculator here: www.betteroffcalculator.co.uk

From 2020, the Government is expected to transfer tax credit and other benefit claimants to Universal Credit. If you are moved onto Universal Credit and it is lower than the amount you are getting in benefits or tax credits you are entitled to ‘transitional protection’ but this does not apply if you make a claim for Universal Credit before then.

Child Benefit Lower earnings limit (for all statutory payments) Higher rate (eldest child) £20.70 pw Lower rate £118.00 (average weekly earnings) £13.70 pw Families where one or more parents earn more than £50,000 will be subject to a High Earner Child Contribution-based Jobseeker’s Allowance/ Benefit charge. Employment and Support Allowance Maternity Allowance Under 25 or lone parent under 18 £57.90 £148.68 per week or 90% of average earnings [the Over 25 or lone parent over 18 £73.10 lower of the two is paid] Statutory Maternity/Adoption Pay /income-based Jobseeker’s First 6 weeks 90% of earnings Allowance/ income-based Employment and Support Allowance/ Remaining 33 weeks £148.68 per week or 90% of average earnings [the lower of the two is paid] single person couple Statutory Paternity Pay £148.68 per week or 90% of average earnings [the Under 25 or lone parent under £57.90 £114.85 lower of the two is paid] for 2 weeks 18 Statutory Shared Parental Pay Over 25 or lone parent over £73.10 £114.85 18

£148.68 per week or 90% of average earnings [the lower of the two is paid] for up to 37 weeks (the Rates vary depending on circumstances; premiums mother/adopter must reduce maternity/adoption may be payable e.g. for disability or carers leave and pay) Savings limit Statutory Sick Pay Lower £6,000 £94.25 per week Higher £16,000

www.maternityaction.org.uk Company no. 6478568 Charity reg. no. 1128776 Maternity Action Information Sheet 2

be complicated and you need to have details of your Tax Credits income and housing costs as well as the amounts Working out your entitlement to tax credits is com- below. For an online calculator, see www.gov.uk/ plicated and you need to have details of your in- universal-credit/what-youll-get come as well as the amounts below. If you are al- Universal Credit amounts are monthly figures. ready claiming Working/Child tax credit you can stay on tax credits if you have a new baby and you Standard allowance single person couple may get more help, see www.gov.uk/child-tax- Under 25 £251.77 £395.20 credit/already-claiming Over 25 £317.82 £498.89

Additional amounts for limited capability for work may Tax Credit amounts are yearly figures. also be payable.

Child Tax Credit Child element Child element £277.08 First child (born before 7th Family element basic £545.00 April 2017) Child element £2780.00 £231.67 Second/subsequent child Disability element £3355.00 Sever disability element £1360.00 Disabled child additions £126.11 Lower rate Working Tax Credit £392.06 Higher rate

Basic element £1960.00 Couple element £2010.00 Childcare element Lone parent element £2010.00 Up to 85% of your registered childcare costs up to the maximum of: 30-hour element £810.00 £646.35 one child Disability element £3165.00 £1108.04 two or more children Severe disability element £1365.00

Work allowance Childcare element Lower rate £287.00 70% of eligible childcare costs covered up to a Higher rate (no housing costs) £503.00 weekly maximum of:

One child £175.00 Two or more children £300.00 Benefit Cap If you get Housing Benefit or Universal Credit and receive more than the benefit cap rate your award will Thresholds be reduced in line with the cap. Some of the benefits included in the cap are Child Benefit, Child Tax Credit, Working Tax Credit only or both Child and Working Housing Benefit, Income Support, Jobseeker’s Tax Credits claimed £6420.00 Allowance, Employment Support Allowance and Child Tax Credit only [also max income for Maternity Allowance. entitlement to health benefits] £16105.00

Income rise/fall disregard £2500.00 Rest of Great Britain: Inside Greater London:

Couples/single people with children The household income limit for Child Tax Credit is approximately £25,000 for a family with one child or £384.62/week £442.31/week £32,000 for a family with two children, depending on individual circumstances. Couples with children will (£1666.67/month) (£1916.67/month) need to work at least 24 hours to qualify for Working Tax Credit, with some exceptions. Universal credit Single people without children Working out your entitlement to universal credit can £257.69/week £296.35/week (£1116.67/ month) (£1284.17/month) www.maternityaction.org.uk Company no. 6478568 Charity reg. no. 1128776 Maternity Action Information Sheet 3

www.maternityaction.org.uk Company no. 6478568 Charity reg. no. 1128776