Child Benefits: how are the rules changing and how much are the payments?

Chancellor Jeremy Hunt has raised the maximum amount that may be earned before child benefit payments begin to be removed, meaning that more families will be eligible to collect them starting in April.

According to the government. Over half a million households will benefit from the improvements.

What are the payments of child benefits and who can apply for it?

Child benefit is payable if you are the parent of a child who is:

• Under 16
• Under 20 if they stay in approved education or training

Currently, child benefit is worth:

• For the eldest or only child it is £24 a week
• For younger children it is £15.90 a week

Entitlement to the amount of child benefit can be viewed here - https://www.gov.uk/child-benefit-tax-calculator

From 6 April 2024, it is going up to:

• For the eldest or only child it will be £25.60
• For younger children it will be £16.95

Every four weeks, child benefit is typically deposited into a designated bank account.

But you can get the money every week if you're a single parent or if you get additional benefits like universal credit.

High-Income Child Benefit Charge

The amount you may earn before losing child benefit has been raised by the chancellor.

It will increase from £50,000 in April to £60,000 until one parent earns more than that amount. It will not be completely removed until they make £80,000, as opposed to their current £60,000 income.

The High Income Child Benefit Charge results in lower payments (HICBC).

The HICBC regulations have drawn criticism for unjustly penalising households with a single high income as well as single parents.

Currently, the entire amount is available to a household with two parents making £50,000, or £100,000 in total income.

However, child benefits for households with a single parent who makes slightly more than £50,000 will be lowered, and if they make more than £60,000, it will be eliminated completely.

A consultation about allowing HMRC to gather data on all the people living in the child's home has also been launched by Hunt.

What happens if something changes in your family's situation?

The number of children and where they live determines how much child benefit is paid when a family splits up.

Each of your two children, assuming one lives with each parent, would bring in £24 each week.

Only one of you may file a child benefit claim on behalf of any children you share custody of.

All subsequent children will receive £15.90 apiece, while the oldest will still be entitled to £24.

When two families merge, the oldest kid in the new family receives the higher rate, while any additional children who meet the eligibility requirements receive the lower rate.

(Sources: bbc.co.uk)