History of Child tax credit in Timeline

A Child Tax Credit (CTC) is a government benefit offered in various countries to provide financial assistance to parents with dependent children. Eligibility often depends on factors like the number of children and the taxpayer's income level. Certain income thresholds may apply, such as in the United States, where the full CTC is limited to families earning under $400,000 per year. Similarly, the United Kingdom has its own income limits for accessing their child tax credit.

October 2015: House of Lords voted for Labour Party proposals for financial redress

On Monday, October 26, 2015, the House of Lords voted for Labour Party proposals for financial redress to those affected by reduced entitlements.

2016: Child Tax Credit lifted about 3 million children out of poverty

In 2016, it was estimated that the child tax credit lifted about 3 million children out of poverty.

2018: Child Tax Credit replaced by Universal Credit

Since 2018, Child Tax Credit has been replaced by Universal Credit for most people in the UK.

2018: CTC set to $2,000 per qualifying child

Since 2018, the Child Tax Credit (CTC) is $2,000 per qualifying child.

July 15, 2021: Payments begin for expanded child tax credit

On July 15, 2021, 39 million households, covering 88% of children in the United States, will begin receiving payments automatically due to the expansion of the child tax credit under the American Rescue Plan Act (ARP).

2021: Expansion of CTC reduced child poverty by an additional 26%

In 2021, a Columbia University study estimated that the expansion of the CTC in the American Rescue Plan Act reduced child poverty by an additional 26%.

2021: Child Tax Credit available to taxpayers who have children under the age of 18

In 2021, the child tax credit is available to taxpayers who have children under the age of 18.

April 2025: End of Child Tax Credit in the UK

In the United Kingdom, by April 2025, a family with children and an income below about £32,200 could claim the child tax credit on top of child benefit.

April 2025: Closure of Child Tax Credit and Working Tax Credit schemes

The Child Tax Credit and Working Tax Credit schemes closed on April 5, 2025. No further Tax Credit payments will be made, and all claimants must migrate to Universal Credit.