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Sunday , October , 02 2022
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Two Child Limit

With effect from 6 April 2017, Child Tax Credit (CTC) is limited to two children where a new child is born or joins a household on or after this date.

If you are already in receipt of CTC for more than two children born before 6 April 2017, this will continue to be paid.

There are exceptions to the two child limit and the decision and on whether a third or subsequent child should be included in the tax credit award rests with Her Majesty's Revenue and Customs (HMRC). For further information please click here.

The two child limit will also apply to Housing Benefit in the following scenarios:

  •  New claims made on or after 6 April 2017
  •  Where a new child/youth joins an existing claim on or after that date

The rules limit the number of personal allowances paid for a child or youth to two per claim.

All children and youths in the household will still be taken into account when awarding premiums and deciding the bedroom requirement.

The changes apply to:

  • Housing Benefit claims for the working age and pensioners made on or after 6 April 2017

Housing Benefit will follow any decision made by Tax Credits e.g. if three or more children are taken into account in the CTC assessment, then regardless of when an HB claim is made, the same number of dependant allowances will be used in the HB calculation.

To ensure we are paying you the correct amount of Housing Benefit we will need to see your full Tax Credit award letter. 

If you wish to appeal the decision to restrict Housing Benefit to two children then an appeal will need to be lodged against the HMRC CTC decision not to pay CTC for the third or subsequent child / young person joining the household on or after 6 April 2017. We, the Local Authority, are unable to determine the number of children or youths which should be included in your Housing Benefit personal allowance.

Please note that Council Tax Reduction is unaffected by this change.

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