What the Child Benefit rate rise means for you

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.’

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