Millions of households will see a slight increase in child benefit payments from April 12, as weekly rates rise in line with inflation. The government subsidy, which helps with the costs of raising a dependent, will increase by 10p per week for the first child and 5p per week for additional children.
From April 12, families will receive £21.15 per week for the first child (up from £21.05) and £14.00 per week for each additional child (up from £13.95). This means monthly payments will be £84.60 for an eldest or only child and £56.00 for additional children. The benefit is paid every four weeks on a Monday or Tuesday.
Child benefit is available for children up to age 16, or up to 20 if they are in full-time education or government-approved training. There is no limit on the number of children a parent or guardian can claim for. Claimants also receive National Insurance credits, which count towards their state pension.
However, if a claimant or their partner earns more than £50,000 a year, a portion of the benefit must be repaid through the tax system. The repayment rate is 1% for every £100 earned over £50,000. If earnings exceed £60,000, the entire amount must be repaid. Critics note that the cap is based on the highest earner's salary rather than household income, which can lead to anomalies.
Those earning above the threshold must complete a self-assessment tax return each year. Alternatively, they can opt for a “zero rate” child benefit, which allows them to claim National Insurance credits without receiving cash payments. It is important to opt out officially to avoid losing state pension credits.
