MILLIONS of parents are set to get a bank boost in April when child benefit rates go up.
It was announced last year that a number of benefits will rise in line with September’s inflation rate.
Jeremy Hunt announced in November’s Autumn Statement that payments will go up by 10.1%.
Child benefit is among those set to increase, as well as others including Universal Credit and pension credit.
You can claim child benefit if you’re responsible for a child who is under 16 or under 20 and in approved education or training.
Only one person in the household can get the benefit, but there is no limit to how many children you can claim for.
Below we explain how much the uplift will see your payments go up by and all you need to know about claiming child benefit.
There are two child benefit rates, one for the eldest child and another for each further child or children.
The current rate for your eldest or only child is £21.80 per week. That’s £87.20 a month or £1,133.60 a year.
But, from April 2023 the rate for your eldest or only child will go up to £24 a week – or £96 a month and £1,248 a year.
This is an increase of £2.20 a week, £8.80 a month and £114.40 a year.
For each of your other children it’s £14.45 a week – £57.80 a month and £751.40 a year.
And, from next April for your other children you’ll get £15.90 a week, which is £63.60 a month and £826.80 per year.
That’s an extra £1.45 a week, £5.80 a month, and £75.40 a year.
Child benefit is usually paid every four weeks on a Monday or Tuesday.
But you can have the money paid weekly if you’re a single parent or getting certain other benefits like Income Support.
You can get the money paid into any account, apart from a Nationwide cashbuilder account in someone else’s name.
You need to apply for child benefit which you can do online through gov.uk.
Only one person can get the benefit for the child or children though so you’ll have to decide which parent will get it.
There are other benefits you might get on top of child benefit if you’re on a low income, like the child element of Universal Credit.
You will usually qualify for child benefit if you live in the UK and you’re responsible for a child under 16.
The support can also be claimed for a child under 20 if they stay in approved education or training.
To be considered responsible for a child, you will live with them or you’re paying at least the same amount as child benefit rates to look after them – for example food, clothes or pocket money.
It’s important to note that eligibility changes if a child goes into hospital or care and if your child starts to live with someone else.
If you’re not sure about your eligibility you can contact the child benefit office.
You won’t be able to get the full amount of child benefit if you earn over £50,000 and you’ll get nothing at all if you earn over £60,000.
That’s because of something called the High Income Child Benefit Charge – but if it applies then it’s still worth claiming.
If either parent is earning over £50,000 they have to pay the High Income Child Benefit tax charge.
This means you pay back 1% of your child benefit for every £100 of income over this amount.
Once you reach £60,000 of income you have to repay the full amount.
The reduction applies when just one parent or guardian earns more than the threshold, and not on combined household earnings.
Parents have been caught out by the complicated rules and extra charge and have been landed with bills for thousands of pounds.
It’s up to parents to notify HMRC if they are liable for the charge and they must file a self-assessment tax return to pay it.
Parents who do know about the charge could also end up missing out on cash.
They can decide to opt out of getting the benefit altogether to avoid having to pay money back. But they will miss out on National Insurance (NI) credits.
These fill gaps in NI contributions when not working count towards how much state pension you get in retirement.
For the full list of benefits set to rise in April see our round up.
Or, for the list of the benefits not going up this year see here.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk
