Millions of families in the UK will soon benefit from higher Child Benefit payments, announced by HMRC for implementation from April 6, 2024.
In an effort to boost household finances, the Government has raised the yearly entitlement for families with one child to £1,331 – a rise of £83.20.
Families with additional children will receive up to £881 per year, with no limit on the number of children eligible for the benefit.
Under this revised scheme, payments will be structured as follows:
● £102.40 every four weeks (£25.60 weekly) for the first or only child.
● £67.80 (£16.95 weekly) for each subsequent child.
HMRC has simplified the process for families already receiving benefits, ensuring uninterrupted direct bank deposits with no need for further contact. Any necessary updates to personal details, like changes in bank accounts or addresses, can be easily managed through the HMRC app or online platform.
For families welcoming a new addition, submitting claims online can result in receiving the first payment within three days, with the option to backdate claims for up to three months.
Starting from April 2024, the High Income Child Benefit Charge (HICBC) will no longer impact families where the highest earner’s salary is up to £60,000, raised from the previous threshold of £50,000. For incomes between £60,000 and £80,000, the benefit will gradually decrease, aligning fully with the HICBC for earnings exceeding £80,000.
Laura Trott, Chief Secretary to the Treasury, commented:
“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 more information, click here: https://www.gov.uk/government/news/what-the-child-benefit-rate-rise-means-for-you
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