Working Tax Credit (WTC) and Child Tax Credit (CTC) were introduced for the first time in 2003/04. The rates of WTC and CTC for 2005/06 have been in many cases increased in line with inflation, but some elements have not (e.g. the amount of childcare cost that the Revenue will cover has been increased from 70% of £200pw for two children to 70% of £300pw - a 50% increase). The Chancellor also promised that the child element of Child Tax Credit will increase in line with average earnings over the next three years, predicted to be a 13% rise by 2007/08.
The full table of rates is too large and complex for this brief summary.
