Published On: Tue, Apr 2nd, 2024
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DWP Child Benefit: Changes to boost finances of thousands – what it means for you | Personal Finance | Finance

Millions of families who claim Child Benefit will receive a payment boost from April 6, HM Revenue and Customs (HMRC) has confirmed.

At the same time, thousands of households where one parent is earning up to £60,000 will now be able to claim and keep all of the Benefit following changes in the Budget.

Families with one child will now receive up to £1,331 a year – an annual increase of £83.20.

The figure for any additional children child rises to £881 – 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.

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.”

Before the Spring Budget, a parent who had an annual income of £50,000 or more would be liable to pay High Income Child Benefit Charge (HICBC).

This effectively withdrew the value of Child Benefit for every pound earned over this threshold until it was wiped out completely once income reached £60,000.

This changes from April 6 where the threshold for paying HICBC rises from £50,000 to £60,000. The HICBC will then eat away at the value of Child Benefit due to the point where it is wiped out when annual income is £80,000.

Celebrating the increase in the threshold, 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.”

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.

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