Child Tax Credit (CTC) is a benefit to help families on low incomes with the cost of raising children. As of 6th April 2017, this is going to be limited to two children.
Don’t worry if you already get CTC for more than two children, this change to CTC will not apply to you. Payments will continue for children born before 6th April 2017. This means that if you are currently claiming for more than 2 children, your Tax Credits will remain unchanged.
If you are getting CTC for two children and you have a third child after 6th April 2017, you will not be able to claim anymore of the child element of Child Tax Credit for the third child unless an exception applies.
In addition to the 2 child limit, the family element of Child Tax Credit, £545 per year, will be abolished. This will mean that families already claiming and receiving this will continue to do so. However for new claims where the eldest child is born on or after 6th April 2017, the family element will not be paid.
From 6th April 2017 new claims to Universal Credit will not be accepted if there are 3 or more children in the household. Instead you will need to claim Child Tax Credit and, if appropriate, Housing Benefit.
If you are already receiving Universal Credit you will remain on it. If a third child is born or moves into the household on or after the 6th April 2017, a decision will be made on your entitlement.