People who receive Child Benefit payments or Guardian’s Allowance are set to get more money from next year.
HM Revenue and Customs (HMRC) has published proposed new weekly payment rates, which will come into effect from April 2023. The guidance has been issued after Chancellor Jeremy Hunt confirmed that benefits would rise by 10.1% from next year.
Child Benefit is given to people who are responsible for bringing up a child aged below 16 or a young person under 20, if they are still in full-time education or on certain approved training courses. The benefit is paid every four weeks, either on a Monday or a Tuesday, and there is no limit to how many children a parent or guardian can claim for.
It is also a means-tested benefit, so income below £50,000 and savings do not impact the amount a person receives and you do not need to have paid any National Insurance contributions to get it, reports the Daily Record. Here is a round-up of the proposed new rates.
Child Benefit payment rates for 2023/24
There are two Child Benefit rates in place.
Current rates per week
- Eldest or only child - £21.80
- Additional children - £14.45
New rates per week - from April 2023
- Eldest or only child - £24.00
- Additional children - £15.90
How much is the increase?
This is an increase of £2.20 and £1.45 respectively per week and means the new, regular four-weekly payments will be £96.00 for an eldest or only child (an increase of £8.80) and £63.60 for any additional children (an increase of £7.60).
Over the next financial year, this means parents will receive an additional £114.40 and £75.40 respectively.
Guardian's Allowance rates from April 2023
The new weekly rate for Guardian's Allowance will be £20.40 - an increase of £1.85 on the current 2022/23 rate of £18.55. This is also paid every four weeks, which means payments will rise from £74.20 to £81.60.
How do earnings affect Child Benefit?
Anyone can claim Child Benefit if they are responsible for a child, but earnings may have an impact on the payments. If the claimant or their partner earns more than £50,000 a year they will need to pay back some of the Child Benefit as Income Tax.
One per cent of the family’s Child Benefit will need to be paid back for every £100 earned over £50,000 each year. If over £60,000 is earned in a year then all of the Child Benefit claimed will need to be paid back.
It is possible to stop or restart a claim at any point and free support is available for anyone who needs help with their application. For more information on Child Benefit, visit GOV.UK, here.