Family Credit (FC) was a social security benefit introduced by the Social Security Act 1986 (c. 50) for low-paid workers with children in Great Britain that replaced Family Income Supplement.
The benefit was designed for families with children if at least one person is working more than 24 hours a week on average.
Up to £60 was deductible for the cost of childcare if neither claimant nor partner could care for the children while working.
[3] The amount paid through Family Credit was taken into account in full for calculating Income Support, Council Tax Rebate and Housing Benefit.
Those who got Family Credit were also passported to the NHS Low Income Scheme, cheap dried milk for babies, travel to hospital for treatment and possible Social Fund grants for babies or funerals.
A worker receiving Housing Benefit as well could have been on a marginal tax rate of 96p.