Who can claim and what for - The Maternity Alliance takes you through the benefits maze

What is it?
A tax-free weekly benefit for working parents on low or middle incomes. If you have a partner the tax credit can be paid either to you or your partner. The claim needs to be made in the name of the person who wants to receive payment of the tax credit. If you are the non-working member of a couple then the tax credit can be paid directly to you either into a bank account or by order book. If you work for an employer then the tax credit can be paid with your wages or salary. The Inland Revenue (tax office), will notify your employer how much tax credit to pay you, but your claim is confidential and they will not tell your employer what the tax credit is for.

The payment is made as part of your tax, so it will show as a credit on your pay slip. For example; if you normally pay £30 a week tax on your wages and you get £40 a week WFTC you will be paid £10 tax credit instead of having £30 tax taken off your wages.

Who gets it?
Families (including one parent families) with at least one child under 16 (or up to 19 if studying A levels or equivalent full time), where one parent works 16 hours a week or more. The more children you have and the older they get, the more you can earn and still get WFTC.

On your Child Benefit letter of award or benefit book there is a personalised message which tells you how much your family can earn and qualify for WFTC.

For more information you can ring the WFTC helpline on 0800 597 5976.

How much is it?
It depends what your income is, how many children you have, how old they are, and whether you pay for registered childcare. If your income is less than £90 a week you get the maximum amount. You get less if you have savings of over £3,000, and you will not get WFTC if you have savings over £8,000.

As a rough guide:
If you have one child, you may get WFTC if your family income (after tax) is less than about £220 a week, or less than about £240 a week if you or your partner work 30 or more hours per week. If you pay for registered childcare, you may be able to earn up to about £365 (one child) a week or £465 (two children) a week and still get WFTC (see Help with childcare costs.)

Any Child Benefit or Maternity Allowance you are receiving is ignored in working out your family income. Any child maintenance you receive is also ignored, so if you apply for WFTC you do not have to fill in forms for the Child Support Agency as you are asked to with some benefits.

How do I claim?
Claim on form WFTC1 which you can get from your social security office, Jobcentre or by calling 0845 609 5000 (0845 609 7000 in Northern Ireland). You cannot claim before the birth of your first child. Each award of WFTC normally lasts for 26 weeks and the amount stays the same even if your circumstances change.

WFTC is paid in your wages or salary if you are employed, or straight into a bank account every four weeks, or by a book of orders which you cash at the post office. If you live as a couple, you and your partner can choose which of you receives the WFTC.

Anything else?
If you get WFTC you may also claim a £200 Sure Start Maternity Grant (£300 for babies due on or after 3.12.2000 and this will increase to £500 from April 2002.)You may also be able to claim some other benefits such as help with housing costs and health benefits, but these benefits are only available for families on a low income, not all families receiving WFTC will qualify. You will need to check.

For more information about working parents’ rights see the Maternity Alliance website.

For details of publications, leaflets and information packs contact The Maternity Alliance office:
45 Beech Street
London EC2P 2LX
Information line l 020 7588 8582