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Liverpool Echo
Liverpool Echo
Business
Linda Howard & Gemma Jones

Parents set to get an extra £114 in their banks as Child Benefit increases

HMRC has confirmed the proposed increase for those claiming Child Benefit and Guardian’s Allowance.

The changes will come into effect early next year, in April, meaning that anyone who receives Child Benefit or Guardian’s Allowance will get higher payments paid into their banks. The guidance has been issued following Chancellor Jeremy Hunt’s recent Autumn Statement where he confirmed that State Pension and benefits will be uprated by 10.1% from April, 2023.

Anyone who is responsible for bringing up a child aged below 16 or a young person under 20, if they are still in full-time education or on certain approved training courses could be eligible for Child Benefit. It is also a means-tested benefit, so income below £50,000 and savings do not impact the amount a person receives and you do not need to have paid any National Insurance contributions to get it, reported the Daily Record.

READ MORE: Many UK households to get £1,500 to help with energy bills

Here is everything you need to know about what is changing.

Child Benefit payment rates for 2023/24

There are two Child Benefit rates in place.

Current rates per week

  • Eldest or only child - £21.80
  • Additional children - £14.45

New rates per week - from April 2023

  • Eldest or only child - £24.00
  • Additional children - £15.90

How much is the increase?

This is an increase of £2.20 and £1.45 respectively per week and means the new, regular four-weekly payments will be £96.00 for an eldest or only child (an increase of £8.80) and £63.60 for any additional children (an increase of £7.60). Over the next financial year, this means parents will receive an additional £114.40 and £75.40 respectively.

Guardian's Allowance rates from April 2023

The new weekly rate for Guardian's Allowance will be £20.40 - an increase of £1.85 on the current 2022/23 rate of £18.55. This is also paid every four weeks, which means payments will rise from £74.20 to £81.60.

How is Child Benefit and Guardian's Allowance paid?

The payments come through every four weeks on a Monday or a Tuesday and the claimant will also be awarded National Insurance credits which can count towards their State Pension.

What age do Child Benefit payments stop?

Child Benefit can be claimed for any child below 16 or under 20 if they stay in approved education or training.

What if your circumstances change?

Any changes in circumstances which may affect a claimant’s eligibility must be reported to the Child Benefit office immediately.

What else you need to know

There is no limit on how many children can be claimed for, but only one person can receive Child Benefit. HMRC have also announced the new allowances for Working Tax Credits and Child Tax Credits - see the new threshold rates on GOV.UK here.

How do earnings affect Child Benefit?

Anyone can claim Child Benefit if they are responsible for a child, but earnings may have an effect on the payments. If the claimant or their partner earns more than £50,000 a year they will need to pay back some of the Child Benefit as Income Tax.

One per cent of the family’s Child Benefit will need to be paid back for every £100 earned over £50,000 each year. If over £60,000 is earned in a year then all of the Child Benefit claimed will need to be paid back.

It is possible to stop or restart a claim at any point and free support is available for anyone who needs help with their application. For more information on Child Benefit, visit GOV.UK, here.

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