Child benefit claims increase following income rule change
New Child benefit claimants have risen in April following the government’s changes to the rules on how much parents can earn and still be eligible. There were 86,656 new claims made. This is an increase of 16% over the previous month according to a BBC Freedom of Information (FOI) request.
Parents are expected to begin paying back part of the benefit once they earn a certain income. In the March Budget, then-Chancellor Jeremy Hunt said that the threshold would go up in April. According to one expert, this announcement has not only meant that more people are eligible to claim, but will remind others who are already eligible that they should claim it.
If you are responsible for raising a child under the age of 16 or under 20 if they have remained in approved education or training, then you are eligible for child benefit. Only one person can claim the benefit per child. The payments are £25.60 per week for the eldest or only child and £16.95 a week for younger kids.
Payments are however reduced as soon as a parent is earning over a certain level. This is known as the High Income Child Benefit Charge or HICBC. On 6th April, the level at which people are expected to begin repaying part of their benefit climbed from £50,000 to £60,000. The level in which it will be withdrawn completely has also risen from £60,000 to £80,000.
683,000 families accounting for 1.05 million children, have opted out of the benefit because they would have to pay the HICBC.
HMRC also highlighted that it can sometimes receive duplicate claims, either made in error, or what it referred to as ‘rival claims’ made after a household has broken down.
