Benefits for Students in Scotland Handbook 2024/25Part 1: Benefits and tax creditsChapter 11: Child tax credit 6. Tax credits and benefits
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6. Tax credits and benefits
Means-tested benefits
Child tax credit (CTC) is not taken into account as income for income support, income-based jobseeker’s allowance or income-related employment and support allowance, although working tax credit (WTC) is.
Tax credits are taken into account as income for housing benefit. If a tax credit overpayment from a previous year is being deducted, the amount of the tax credit award less the deduction is taken into account. If you have been overpaid in the same year as the award and the tax credit award is consequently reduced, the lower amount of the award still to be paid to you is taken into account.
Arrears of tax credits are treated as capital for means-tested benefits and disregarded for 52 weeks.
CTC is taken into account when calculating whether the benefit cap applies (see here). If you or your partner get WTC, the benefit cap does not apply.
Child benefit
Child benefit is paid in addition to tax credits. It is ignored as income in the tax credit assessment.
Passported benefits
Getting CTC or WTC may entitle you to other benefits. You may be able to get the following.
    •Free school lunches from the local authority. Your income for tax credit purposes must be no more than £18,725 a year. You must get CTC but not be eligible for WTC, unless your income for tax credit purposes is no more than £9,552, or you are getting the four-week run-on of WTC because you have reduced your hours or stopped work.1s53 Education (Scotland Act) 1980, as amended (most recently by SI 2024 No.40); The Education (School Lunches) (Scotland) Regulations 2009 No.178
    •Health benefits, such as free dental treatment and vouchers for glasses. Your income for tax credit purposes must be no more than £15,276 and you must be getting CTC or WTC with a disability element. See Chapter 5 for other ways to qualify for health benefits.
    •Best Start grants and funeral support payments. You qualify if you get CTC or WTC (or both). See cpag.org.uk/scottish-benefits for more information.
    •Best Start foods. If you have a child aged under three, or you are pregnant, and get CTC, you are eligible for a Best Start foods payment card which can be used to buy certain foods. You are also eligible if you get WTC.2Reg 10 The Welfare Foods (Best Start Foods) (Scotland) Regulations 2019 No.193, as amended (most recently by SI 2023 No.371)
    •Scottish child payment.
    •You may also be eligible for a school clothing grant - see mygov.scot/clothing-grants.
 
1     s53 Education (Scotland Act) 1980, as amended (most recently by SI 2024 No.40); The Education (School Lunches) (Scotland) Regulations 2009 No.178 »
2     Reg 10 The Welfare Foods (Best Start Foods) (Scotland) Regulations 2019 No.193, as amended (most recently by SI 2023 No.371) »