What the Child Benefit rate rise means for you

Millions of families who claim Child Benefit will automatically receive increased payments from 6 April 2024, HM Revenue and Customs (HMRC) has confirmed.

Families with one child will now receive up to £1,331 a year – an annual increase of £83.20, and up to £881 a year per additional child – an annual increase of £54.60. There is no limit to how many children families can claim for.

Parents will receive £102.40 every 4 weeks (£25.60 per week) for the first or only child and £67.80 every 4 weeks (£16.95 per week) for each additional child.

Families with ongoing claims do not need to contact HMRC, as the increased benefit payment will continue to be paid directly into their bank accounts. Anyone who needs to update their personal details, such as a change of bank account or address, can do so using the HMRC app or online at GOV.UK.

Parents with a newborn baby are encouraged to make a claim online as soon as possible and could receive their first payment in as little as three days. Child Benefit claims can be backdated by a maximum of three months.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:

The increase in Child Benefit rates for existing claimants is automatic and families do not need to contact us. New claimants should apply online or using HMRC’s app. Search ‘child benefit’ on GOV.UK for more information.

HMRC is reminding parents yet to benefit from Child Benefit that it is quick and easy to claim on GOV.UK or via the HMRC app, which can be used to:

  • apply online

  • backdate claims for up to 3 months

  • add a new baby to a claim

  • tell HMRC about a change in circumstances

  • update details i.e. change of address/bank details

  • view or print proof of entitlement to Child Benefit

From 6 April 2024, families where the highest earner has a salary of up to £60,000 a year will not be subject to the High Income Child Benefit Charge (HICBC). 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.

Laura Trott, Chief Secretary to the Treasury, said:

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.

The legacy of the pandemic and the war in Ukraine has put pressures on everyone’s cost of living. But, by taking difficult decisions, the economy is starting to turn a corner, and we can now provide further support to parents.

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. Parents who make a claim and then choose to opt-out of receiving Child Benefit payments can still receive National Insurance credits if one parent is not working.

Parents with an income above £50,000, who reinstate their Child Benefit before 6 April 2024, may be subject to HICBC charges if they choose to start payments in the 2023 to 2024 tax year. For new claimants who claim Child Benefit on or after 6 April 2024, any HICBC liability will be based on the new 2024 to 2025 threshold of £60,000 to £80,000.

More information can be found on GOV.UK. Search ‘High Income Child Benefit Charge.’

This government is committed to supporting working families which is why from 1 April, working parents of 2-year-olds are now entitled to 15 hours a week of free childcare during term time. This is the largest ever investment in childcare in England’s history and is a key part of the government’s priority to grow the economy and will help support people into work.

Further information

The rates have risen from:

  • £24.00 to £25.60 per week for the eldest or an only child

  • £15.90 to £16.95 per week for other children

This amounts to an extra £83.20 per year for one child and an extra £54.60 for each additional child.

Parents can claim Child Benefit online from the day after a child’s birth has been registered. They will need to:  

  • create a Government Gateway account when making a claim for Child Benefit, which will require proofs of identification.

  • when creating a new account, HMRC will send you an activation code via email. Once received, you can then apply for Child Benefit online.

When ready to make the claim, applicants should have the following documents to hand:  

  • the child’s birth certificate

  • your bank details

  • your National Insurance number

  • your partner’s National insurance number (if you have a partner)

Parents and carers who cannot apply for Child Benefit online can Parents and carers who cannot apply for Child Benefit online can claim by post or claim by phone

From 6 April 2024, where someone receives Child Benefit and they, or their partner, have income above £60,000, an Income Tax charge will apply to the highest earner equivalent to 1% of the total benefit received for each £200 of income above £60,000. Where the income is above £80,000 the Income Tax charge will be the same amount as the total Child Benefit received.

Previous
Previous

The impact of the VAT threshold rise on businesses

Next
Next

Zyla Client JUDE features on dragons’ den