Recent changes to Child Benefit following the Spring Budget

What are the recent changes to Child Benefit following the Spring Budget?

What is Child Benefit?Child Benefit applies to England, Wales, Scotland, and Northern Ireland. It is money that is paid to whoever is responsible for bringing up a child, whether that be their parents or another carer. There aren’t any age limitations for the person making a claim.

You are eligible for this benefit if you’re responsible for bringing up a child who is either under 16 or under 20 and staying in approved education or training. This is the Government’s way of recognising the high costs that are involved in the upbringing of children.

How much is Child Benefit?The weekly Child Benefit rates are as follows:

•  Eldest or only child - £25.60
•  Other children - £16.95

It is important to note that this applies even if you have twins born within a minute of each other - you will still get different amounts for them. Child Benefit will be paid into your account every 4 weeks. However, you can request to be paid weekly on the claim form if you are a single parent or if you or your partner get any of the following:

•  Income Support 
•  Income-based Jobseeker’s Allowance 
•  Income-based Employment and Support Allowance 
•  Universal Credit 
•  Pension Credit

What are the recent changes?Chancellor Jeremy Hunt announced some revised measures relating to Child Benefit during the Spring Budget. From April 6th millions of families who claim Child Benefit have automatically received increased payments. The High Income Child Benefit Charge threshold was also increased to £60,000. This charge is tapered, so if the higher earner of you or your partner earns between £60,000 and £80,000, it can still be worthwhile financially to claim.

If you previously opted out of receiving Child Benefit in order to avoid the High Income Child Benefit Charge, you will need to take action yourself if you want to opt back in. It is recommended that everyone who is eligible does claim (even if you choose not to receive payments), as this can entitle you to National Insurance credits that count towards a State Pension.

If you don’t currently claim Child Benefit, what can you do? You can use this link to make a claim or to add another child to an existing claim. Child Benefit is usually backdated for 3 months, or to the date of birth of the child if later.

Get in touch
We are not experts in the field of claiming benefits, so cannot give detailed advice on this aspect, but please do contact us at info@oldfieldadvisory.com or call 02476673160 if you have any questions on the High Income Child Benefit Charge and how it might (or might not) affect you. For more information and advice, visit the Government website here.

Please note: This article is provided for information only and was correct as at time of writing (24/04/24). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance.  No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.