What is Child Benefit?
Child Benefit is a financial payment provided by the UK government to support individuals who are responsible for raising children. It’s a tax-free benefit that is typically paid every four weeks and is available to anyone responsible for a child under the age of 16, or under 20 if the child is still in full-time education or undergoing certain approved training courses. The amount of Child Benefit received can vary based on the number of children and is paid directly to the individual responsible for the child’s care.
Will there be an increase in Child Benefit for 2024?
- Child Benefit Increase: Starting April 2024, Child Benefit and other benefits will go up by 6.7%.
- New Payment Rates: For the eldest child, Child Benefit rises from £24 to £25.60 weekly. For additional children, it increases from £15.90 to £16.97 per week.
- Inflation Basis: The increase aligns with September 2023’s inflation rate, contrary to rumors about using the lower October 2023 rate of 4.6%.
- Government Confirmation: The Chancellor confirmed the use of September’s inflation figures, which is the standard practice for determining benefit increases.
- Child Benefit Eligibility: Payment for those raising a child under 16 (or under 20 if in full-time education/training).
- Payment Structure: Different rates for the eldest/only child and additional children. Paid every four weeks on Mondays or Tuesdays.
- Effective Date: New rates begin in April 2024, coinciding with the 2024/25 tax year. Automatic increase for eligible parents without requiring any action.
- Other Benefits Increase: Chancellor Jeremy Hunt announced in November 2023 that various benefits, including Universal Credit, will also increase by 6.7% from April 2024. This annual increase, called uprating, aligns most benefits with inflation.
- Parents don’t have to do anything to get the new increased rate, it will be paid automatically.
How can I identify the benefits I’m eligible for?
- Child Benefit eligibility hinges on the parent’s immigration and residency status, not the child’s nationality or immigration status.
- Child Benefit Claim: Any responsible adult can claim child benefit, but it’s limited to one parent per child. Claiming starts after registering the child’s birth and can be backdated for up to three months.
- Backdating Eligibility: If eligible, claiming parents can receive owed child benefit and National Insurance credits for the backdated period.
- Income Threshold: Earning over £50,000 a year leads to a High Income Child Benefit Tax Charge, where a portion of the benefit must be repaid.
- Other Benefit Options: Universal Credit replaced Working Tax Credits for most individuals. Those still receiving Working Tax Credits can apply for Child Tax Credits.
- Child Tax Credits Eligibility: Depends on when children were born. For children born before April 6, 2017, parents can claim Child Tax Credits. However, for children born after this date, the eligibility might vary based on birth order and the number of children.
- Regardless of the child’s immigration status, an eligible parent can claim Child Benefit, except when the child has leave to remain with NRPF.
- If a child holds leave to remain with No Recourse to Public Funds (NRPF), seeking legal advice before applying for Child Benefit is crucial to avoid potential negative impacts on the child’s immigration status.
- In households where both or a sole parent has leave to remain with NRPF, they won’t qualify for Child Benefit for a British child, except in cases of specific exceptions.
- Reciprocal Social Security Agreements: If their country of nationality has a mutual social security agreement with the UK, it might enable the parent to claim Child Benefit despite NRPF.
- Other exceptions or specific arrangements established between the UK and the parent’s country of origin might also permit the parent to claim Child Benefit despite the NRPF condition.