Connect with us

Money

Are child benefit payments going up and how much more will I get?

CHILD benefit rates could change in April 2023.

Payments went up by 3.1% in earlier this year, along with several other benefits including Universal Credit.

Families with kids can get child benefit worth hundreds of pounds a year

The Chancellor Jeremy Hunt is still weighing up whether to uprate benefits in line with inflation next April.

Mr Hunt could decide to uprate the likes of Universal Credit and Child Benefit in line with earnings instead.

The move would save around £5bn but politically is very risky.

Many Tory MPs have called for benefits and inflation to stay aligned, and Mr Sunak promised this himself when he was Chancellor earlier in the year.

We will know more following Mr Hunt’s autumn Budget on November 17.

Millions of families get child benefit, though there are some exceptions to who can get the money.

Here we explain how much you’ll get in 2022-23 as it stands currently.

How much is 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 roughly £1,133 a year.

The weekly rate for 2021-22 was £21.15, so with the increase you’re getting around £30 more a year.

Then for each of your other children it’s £14.45 a week – almost £58 a month and £751 a year.

It used to be £14 a week, so you’re making an extra £20 a year.

How do I get child benefit?

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.

Who is eligible to claim child benefit?

You will normally 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.

What is the High Income Child Benefit Charge?

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 credits.

These fill gaps in NI contributions when not working, and count towards how much state pension you get in retirement.

This year’s autumn Budget is set to have a massive effect on Brits, especially as the cost of living crisis continues to crunch household finances.

Mr Hunt will announce a combination of spending cuts and tax rises, the Prime Minister has warned the public to prepare for “difficult decisions” ahead.

1 Comment

1 Comment

  1. Pingback: Universal Credit Christmas payment dates 2022: will I get paid early next month because of the bank holiday?

Leave a Reply

Advertisement

Must See

Advertisement

More in Money