Child benefit increases from April 2022.
Millions of families qualify for the benefit, although there are some exceptions on who can collect the money. We set out below how much can be claimed in 2022-23 alongside some of the exclusions.
How much is it?
There are two benefit rates, one for the eldest child and another for each further child/children. The current rate for the eldest or only child is £21.15 per week and that is equivalent to £84.60 a month, just over £1,000 a year. The rate for each of your other children is £14 a week, around £56 per month and just over £700 a year.
How much is it rising in 2022?
The current rates will rise by 3.1% from April 2022 for the year through to April 2023. That means you can expect the following payments:
For the first or only child £21.80 a week
For the each subsequent child £14.45 a week
That’s an extra £33.80 and £23.40 a year respectively for each rate.
How do I claim?
Child benefit is usually paid every four weeks. But you can have the money paid weekly if you’re a single parent or getting certain other benefits like Income Support. You need to apply for child benefit which you can do online through gov.uk.
Who is eligible to claim?
You will normally qualify for child benefit if you live in the UK and you’re responsible for a child under 16. The support can also be claimed for a child under 20 if they stay in approved education or training.
It is important to note that you will not be able to get the full amount of child benefit if you earn over £50,000 and you’ll get nothing at all if you earn over £60,000. This is because of the High Income Child Benefit Charge.
What is the High Income Tax Charge?
If either parent is earning over £50,000 they have to pay the high income child benefit tax charge. This means you pay back 1% of your child benefit for every £100 of income over this amount.
Once you reach £60,000 of income you have to repay the full amount. The reduction applies when just one parent or guardian earns more than the threshold, and not on combined household earnings.
If you wish to speak to a member of our personal tax planning team you can contact them on 020 7330 0000.