In the 2023 tax year, 335,700 families claimed and were entitled to Working for Families tax credits (WFF). This is a 2.7% decrease from the 2022 tax year.
The above graph shows the number of families claiming and entitled to WFF between 2001 and 2023. The number of families claiming and entitled to WFF increased from 300,100 in the 2001 tax year to 421,200 in the 2011 tax year. This followed increases to the WFF entitlements between 2005 and 2010.
Between 2011 and 2018, the number of families claiming and entitled to WFF decreased to 322,900. WFF entitlements depend on a family’s income. Families with higher income are entitled to less WFF. The decrease between 2011 and 2018 is linked to increasing income over this period.
On 1 July 2018, the Best Start tax credit was introduced and the Family tax credit entitlements were reformed. After these changes, the number of families claiming and entitled to WFF increased, peaking at 354,900 in the 2020 tax year.
Since 2020, the number of families claiming and entitled to WFF has decreased, due to income increases.
In the 2023 tax year, 335,700 families claimed and were entitled to WFF, a 2.7% decrease compared to the previous year.
A total of 647,000 children were supported by WFF payments in 2023.