CHILD benefit rates are set to rise next year giving parents extra cash to spend on essentials.
Payments will increase by 3.1% from April 2022, along with several other benefits including Universal Credit.
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The government confirmed the rise for benefits which usually increase each year to keep up with the rising cost of living.
The State Pension will rise too by up to £288.60 a year and Universal Credit by as much as £189.72 a year for couples.
Millions of families get child benefit, though there are some exceptions to who can get the money.
Here we explain how much you’ll get in 2022-23.
How much is child benefit?
There are two child benefit rates, one for the eldest child and another for younger children.
The current rate for your eldest or only child is £21.15 per week, That’s £84.60 a month or just over £1,000 a year.
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The for each of your other children it’s £14 a week – around £56 per month and just over £700 a year.
How much is child benefit rising in 2022?
The current rates of child benefit will rise by 3.1% from April 2022.
That means you can expect the following payments:
- For the first or only child £21.80 a week
- For the next child £14.43 a week
That’s an extra £33 and £22 a year respectively for each rate.
When and how child benefit is paid
Child benefit is usually paid every four weeks on a Monday or Tuesday.
But you can have the money paid weekly if you’re a single parent or getting certain other benefits like Income Support.
You can get the money paid into any account, apart from a Nationwide cashbuilder account in someone else’s name.
But you can only get the money paid into one account.
Who is eligible to claim child benefit?
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.
To be considered responsible for a child, you will live with them or you’re paying at least the same amount as child benefit rates to look after them – for example food, clothes or pocket money.
It’s important to note that eligibility changes if a child goes into hospital or care and if your child starts to live with someone else.
If you’re not sure about your eligibility you can contact the child benefit office.
You won’t 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.
That’s because of something called the High Income Child Benefit Charge – but if it applies then it’s still worth claiming.
What is the High Income Child Benefit 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.
Parents have been caught out by the complicated rules and extra charge and have been landed with bills for thousands of pounds.
It’s up to parents to notify HMRC if they are liable for the charge and they must file a self-assessment tax return to pay it.
Parents who do know about the charge could also end up missing out on cash.
They can decide to opt out of getting the benefit altogether to avoid having to pay money back. But they will miss out on National Insurance credits.
These fill gaps in NI contributions when not working, and count towards how much state pension you get in retirement.
One grandmother has lost out on £800 a year in state pension payments after missing out on the credits.
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This post first appeared on thesun.co.uk
