In the Spring Budget, Chancellor Jeremy Hunt made a huge change to the child benefit system. To learn more about the changes to child benefit as a result, carry on reading our article below which includes the main points of interest.
What is Child Benefit?
Child benefit is a monthly payment you can get if you are responsible for bringing up a child who is under 16 or under 20 if they stay in approved education or training. The person claiming can be the child’s parent, or their grandparent, adoptive parent, foster parent, older sibling etc.
Child Benefit Current System
Only one person can claim the benefit for each child, but there’s no limit to how many children you can claim for. The amount you could claim before the changes to child benefit are listed below:
- £24.00 paid per week for the eldest or only child
- £15.90 per second or subsequent children
If either your or your partner’s ‘adjusted net income’ is over £50,000 a year, you may have to pay the High Income Child Benefit Charge.
The system currently works off individual income and is considered unfair to many. For example, if a working household has a combined income of £98,000 a year (earning £49,000 each) they get full child benefit, however, a single-parent family earning £50,000 a year wouldn’t get any child benefit, the same as a two-parent family with one earner getting £50,000 and over.
Child Benefit Changes
From April 6th of this year, the following changes will apply:
- You will get an increased amount of £25.60 per week for your first child, and £16.95 for a second or subsequent child.
- The income limit has increased from £50,000 to £60,000, so anyone claiming will now not have to pay any child benefit back until they start earning £60,000 a year.
- You’ll be able to earn up to £80,000 a year before you lose your child benefit entitlement completely.
- There will be a consultation to determine whether to change the current system from individual income to household income by April 2026.
Am I Now Eligible for Child Benefit?
If you didn’t previously claim child benefits and you believe you may now be entitled, check the government’s child benefit tax calculator to find out whether you’ll need to pay anything back.
How Do I Claim Child Benefit?
If you’re eligible, you can claim online, by post and phone. For more general information about child benefits, visit the government’s website today.
Try Out Our Benefits Calculator
You may also be eligible for other benefits alongside child benefit. To see if you’re entitled to more benefits than you currently claim, try out our free benefits calculator online today and check out our benefits guide too.
