Child Benefit: Spring budget for Child Benefit, what is Child Benefit, How much is Child Benefit, benefits, Investments And Everything To Know
What is Child Benefit?
Child Benefit is a tax-free monthly payment provided by the UK government to help families with the costs of raising children. It’s paid to the main carer for every child under the age of 16 (or 20 if they’re in approved education or training).
Spring Budget for Child Benefit (2024):
The recent Spring Budget on March 6th, 2024, included some changes to Child Benefit:
- Increased High Income Child Benefit Charge Threshold: The threshold at which high-income earners start repaying a portion of their Child Benefit has been raised from £50,000 to £80,000. This also means more families will keep the full amount of their Child B.
- Reduced High Income Child B Charge Rate: The rate at which high-income earners repay their Child B has been halved. This means they won’t start repaying the benefit in full until their income reaches £80,000, compared to the previous £60,000 limit.
How Much is Child Benefit?
The amount of Benefit you receive depends on the number and also age of your children:
- For the eldest or only child: £21.80 per week
- For each additional child: £14.40 per week
Benefits of Benefit:
- Provides financial support: Helps families cover the costs of raising children, such as food, clothing, and childcare.
- Universal benefit: Available to most families with qualifying children, regardless of income or employment status.
- Tax-free: You don’t have to pay tax on your Child B payments. You can use the money from Child B however you see fit, including investing it for your child’s future.
How Much is Child B?
- Current Rates (as of March 2024):
- First child: £20.70 per week
- Subsequent children: £14.00 per week
Benefits:
- Provides financial support: Helps families cover essential expenses like food, clothing, and utilities.
- Reduces child poverty: Contributes to the overall well-being of children and families.
- Simplicity: Relatively straightforward eligibility criteria and also application process.
Investments:
- The government invests a significant amount of money in Benefit every year.
- This investment aims to support families and also contribute to a better future for children.
Here’s what’s changing:
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- The upper earnings threshold (where you start paying back some of the benefit) will also rise from £50,000 to £80,000.
- Additionally, a consultation will launch to explore whether child benefit eligibility should be based on household income rather than individual income by April 2026.
Everything to Know:
- Eligibility: You can check your eligibility and apply for Child B on the Gov.UK website: https://www.gov.uk/child-benefit
- Changes in the Spring Budget: The HICBC threshold change may affect how much Benefit some families receive. Use the government’s Child B calculator to see if you’re affected: https://www.eastcambs.gov.uk/content/tax-credits-calculator
- Alternatives: Other financial support programs might be available also depending on your circumstances. Explore options through government websites or consult with a financial advisor.
Remember:
Child B is a valuable resource for many families.
