A recent update to the eligibility rules for child benefit has led to thousands more people being able to claim a benefit worth up to £2,212 a year. The change, which has seen a spike in new claims, was confirmed by a Freedom of Information request that showed 86,656 new claims made in April, a 16% increase from the previous month.
The former Tory government raised the threshold for repaying child benefit from £50,000 to £60,000 per annum. Under the new rules, repayment begins at a rate of 1% for every £200 earned over £60,000, allowing individuals to continue claiming some child benefit until they earn over £80,000 a year. If earnings are below £60,000, the full amount can be claimed.
Child benefit amounts to £25.60 a week for the first child and £16.95 a week for additional children. This translates to £1,331.20 a year for one child and £2,212.60 a year for two children. The benefit is typically paid every four weeks directly into the recipient’s bank account by HMRC.
To be eligible for child benefit, one must be responsible for a child under 16 or up to 20 if the child remains in approved education or training. The claimant must reside in the UK and be the primary caregiver for the child. Only one person can claim child benefit if multiple caregivers are involved. Foster parents can also claim if the local council does not contribute towards the child’s accommodation or upkeep.
The increase in new claims highlights the impact of the updated rules, allowing more families to access financial support through child benefit. It provides crucial assistance to parents in raising their children and managing household expenses, offering valuable relief in times of need.