What the increase in the Child Benefit rate means for you
Millions of families who claim Child Benefit will start receiving larger payouts on April 6, 2024. Families with one kid will receive an annual increase of £83.20 to £1,331 and an additional £54.60 to £881 for each additional child. For the first or only kid, parents will receive £102.40 every four weeks; for each additional child, they would receive £67.80.
Families who have active claims do not need to get in touch with HMRC because their bank accounts will continue to receive the enhanced benefit payment. It is advised that parents who have recently given birth to file an online claim as soon as possible and receive their first payout in as little as three days.
Families with the highest earner earning up to £60,000 annually will not be charged the High Income Child Benefit Charge (HICBC) starting of April 6, 2024.Previously, a person who had an annual income of £50,000 or more would be liable to pay the charge if they or their partner were receiving Child Benefit.
Chief Secretary of the Treasury Laura Trott stated:
We are ending the unfairness in the child benefit system, and as a result 170,000 families will no longer have to pay back child benefit, and nearly half a million families will save an average of around £1,300 next year.
Everyone’s cost of living is under strain due to the pandemic’s aftermath and the conflict in Ukraine. However, by making tough choices, the economy is beginning to improve, and we are now able to provide parents more assistance.
For those earning between £60,000 and £80,000, the amount of Child Benefit they are entitled to receive reduces as income increases within this range. If an individual’s income exceeds £80,000 the HICBC will be equal to the Child Benefit payment. If one parent is unemployed, parents who file a claim and later decide not to accept Child Benefit payments can still obtain National Insurance credits.
If parents with incomes over £50,000 decide to begin receiving payments in the 2023–2024 tax year and restart their Child Benefit before April 6, 2024, they may be charged by HICBC. Any HICBC liability for new claimants who begin claiming Child Benefit on or after April 6, 2024, will be determined using the new £60,000–£80,000 threshold for 2024–2025.
More information can be found on GOV.UK. Search ‘High Income Child Benefit Charge.’
Because of this government’s dedication to helping working families, working parents of children under two years old will now be eligible for 15 hours of free daycare per week during school hours as of April 1. The government’s goal to expand the economy and support people into work is reflected in this, the largest childcare investment in English history.