Child and Working Tax Credits statistics: finalised annual awards, supplement on payments, commentary - 2023 to 2024
Published 30 October 2025
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This publication is available at https://www.gov.uk/government/statistics/tax-credits-statistics-supplement-on-payments-2023-to-2025/child-and-working-tax-credits-statistics-finalised-annual-awards-supplement-on-payments-commentary-2023-to-2024
1. Background
These statistics provide a breakdown of payments made for tax credit claims based on finalised data. This is a supplementary publication following the Finalised Annual Awards publications released in October 2025 for tax year 2023 to 2024, following award finalisation.
The rate of decline in the number of families receiving tax credits increased in 2023 to 2024, largely due to the roll out of Universal Credit.
Generally, the decreases observed between 2023 to 2024 were observed in our finalised annual awards publication found below:
Child and Working Tax Credits statistics, finalised annual awards - 2023 to 2024
Finalisation occurs four to nine months after the end of the tax year when the families’ circumstances for the whole year are known and a finalised award can be calculated. Tax credits recipient families that delay reporting changes in household circumstances can result in either an overpayment or underpayment in their claim.
2. Main headlines
Figure 1: Number of awards by payment type and year
Figure 1 shows the number of tax credits claims that were overpaid, underpaid or paid correctly since 2021-22.
The total number of tax credits continues to decrease, as has the number of underpaid and correctly paid awards. The number of overpaid awards has increased compared to last year.
Between 6 April 2023 and 5 April 2024:
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43% (500,000) of tax credits were paid correctly, a fall of 9 percentage points compared to last year
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48% (558,000) of tax credits were overpaid, a rise of 13 percentage points compared to last year
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9% (108,000) of tax credits were underpaid, a fall of 4 percentage points compared to last year
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the average amount overpaid this year was £729, and the average amount underpaid this year was £859
3. Underpaid awards by band of payment
Figure 2: Underpaid awards by band of underpayment
Figure 2 shows the number of tax credits claims that were underpaid, split by band of underpayment, for both this year and last year’s finalised awards.
Underpayments can range from below £50 to over £2,000. Between 6 April 2023 and 5 April 2024:
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the highest number of underpayments were in the £200 to £500 group, the same as last year
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the £50 to £100 and £100 to £200 payment groups saw the smallest decrease in number of underpaid awards, of 37% each
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the £500 to £1,000 payment group saw the largest decrease in number of underpaid awards, of 46%
4. Overpaid awards by band of payment
Figure 3: Overpaid awards by band of overpayment
Figure 3 shows the number of tax credits that were overpaid, split by band of overpayment, for both this year and last year’s finalised awards.
Overpayments can range from £10 to over £2,000. Between 6 April 2023 and 5 April 2024:
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unlike previous years, overpayment volumes in lower value payment bands from £10 to £500 increased compared to last year
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the highest number of overpayments were in the £200 to £500 group, the same as last year
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overpayment volumes in higher value payment bands decreased compared to last year, following the trend we have seen in previous years
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the £500 to £1,000 payment group saw the smallest decrease in number of overpaid awards, of 1%
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on the other hand, the £50 to £100 payment group saw the largest decrease in number of overpaid awards, of 56%
5. Underpaid and overpaid awards by band of family income
Figure 4: Underpaid and overpaid awards by band of family income
Figure 4 shows the number of tax credits payments that were overpaid or underpaid based on the family’s band of income. Between 6 April 2023 and 5 April 2024:
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the income band group with the highest total number of underpaid and overpaid awards was the £20,000 to £30,000 group
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with the exception of the £5,000 to £10,000 income band group, there were more overpaid awards than underpaid awards
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claimants with an income over £40,000 were 10.67 times more likely to have an overpayment than an underpayment
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those with incomes between £5,000 to £10,000 had the lowest relative number of overpayments to underpayments (2.9 overpayments for every underpayment)
6. Overpaid or underpaid awards by employment status and type of tax credit received
Figure 5: Overpaid or underpaid awards by employment status and type of tax credit received
Figure 5 shows the number of tax credits payments that were overpaid or underpaid based on the family’s employment status and type of tax credits received. Between 6 April 2023 and 5 April 2024:
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the highest number of overpaid awards and underpaid awards were for those in work, receiving both WTC and CTC
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all groups received more overpaid awards than underpaid awards
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the ‘in work, receiving CTC only’ profile group had the largest relative number of overpayments to underpayments (2.9 overpayments for every underpayment)
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the ‘out-of-work, receiving CTC only’ profile group had the lowest relative number of overpayments to underpayments (0.9 underpayments for every overpayment)