TAX CREDITS
Tax Credits provide help for people in low paid work, whether they have children or not, and people with children who are not working. There are two types of Tax Credit:
Working Tax Credit (WTC)
Working Tax Credit gives help to people working 16 hours a week or more who have children or are at a disadvantage in getting a job. (it also helps couples and single people over 25, without children, who work at least 30 hours per week)
Child Tax Credit (CTC)
Child Tax Credit is for couples and lone parents aged over 16 with children. You can claim it whether you are working or not and it is paid as well as Working Tax Credit.
Child Tax Credit replaces the help for new claimants for children previously paid with Income Support and Income-based Jobseeker's Allowance. Child Tax Credit can be paid along with Child Benefit.
CHILD BENEFIT
Child Benefit is paid to couples and lone parents who are responsible for a child. Unlike Child Tax Credit you do not have to be over 16 to claim it, and it isn't affected by your other income.