In his 2024 Budget, The Chancellor, Jeremy Hunt increased the amount you can earn before you start to lose child benefit. Previously, it was taken away entirely when one parent earned more than £60,000. This has been increased to £80,000.
We’ve asked Matt Norton, Senior Client Manager to outline the Child Benefit Changes.
Take it away Matt
The Child Benefit Changes won’t start to be reduced until one parent earns more than £60,000 – up from £50,000. Payments are reduced as a result of the High Income Child Benefit Charge (HICBC). The HICBC rules have been criticised for unfairly penalising single parents and families with one high earner.
Example
A household where two parents earn £60,000 – with a total household income of £120,000 – can get the full amount.
But if a household has one parent who earns just above £60,000, their child benefit will be reduced, and cut altogether once they earn more than £80,000.
In the Budget, Mr Hunt also announced a consultation about letting HMRC collect information about all the adults in the child’s house.
This would mean that from April 2026, child benefit claims would be based on total household income instead of the highest earner’s wage – a move that has been welcomed.
Rates
On 6 April 2024, it rose to:
- £25.60 a week for the eldest or only child, up from £24
- £16.95 a week for younger children, up from £15.90
Child benefit is usually paid into a nominated bank account every four weeks.
How do you apply for child benefit?
You can claim child benefit 48 hours after you’ve registered a birth, or as soon as a child comes to live with you.
If you claim at a later point, payments can be backdated for up to three months.
You can claim online, by post, or by phone and you’ll need the following documents:
- Your child’s birth or adoption certificate.
- Your bank or building society details.
- Your National Insurance number.
- Your partner’s National Insurance number.
How does child benefit affect National Insurance credits?
Claiming child benefit for a child under the age of 12 means you automatically get National Insurance (NI) credits, which count towards your state pension.
These credits can help fill gaps in your NI record if you’re not working or if you don’t earn enough to pay NI contributions.
If you already have a full year of NI credits you can also transfer these credits to grandparents or another family member who has been caring for your child (under the age of 12) which can help them fill in any gaps in their NI record.
The government advises that you should still fill in the child benefit claim form, even if you opt out of getting payments, so that you can get NI credits.
Doing so also means your child will automatically get an NI number when they turn 16. Otherwise they will have to apply for one.
Here to help
If you have any questions regarding the changes to child benefit, our team of experts can help. To get in touch, please fill out the form below and we’ll be in touch shortly.
