More parents will be paid full child benefit after the chancellor announced changes to the threshold in the latest budget.
How will the change affect you?
Use the calculator below to find out how much you can claim:
What is child benefit?
Child benefit is money paid to parents or guardians who are responsible for raising a child.
There are no specific age rules for the person making the claim, and it isn’t means-tested.
It is paid at two different rates:
But, you can be liable for a tax charge if you earn over a certain amount.
Under the current rules, if either you or your partner have an individual income of £50,000 or more and you receive child benefit, you are liable to pay the high-income child benefit tax charge.
The charge is equal to 1% of the total child benefit received for every £100 earned over £50,000.
Once you earn £60,000, the charge equals all the benefit you’d receive, so you get nothing.
However, Jeremy Hunt announced a rise in the threshold in the spring budget, increasing them to £60,000 (that’s when you start losing out) and £80,000 (when you get nothing) respectively.
From 6 April, you’ll be charged 1% of your child benefit for every £200 of income that exceeds £60,000 – up until £80,000.
It is the first time that the threshold has been raised since it was introduced in 2013.
Criticisms
The way the child benefit is calculated has been criticised for being unfair to single-income households.
Under the current rules, a single parent will start to lose out once they earn over £50,000 (soon to be £60,000). However, two parents earning exactly £50,000 each (soon to be £60,000 each) receive the full amount.
