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Child Benefit Changes: What UK Parents Need to Know
Thousands of UK families are facing a crucial deadline: May 31st. That's the day Child Benefit payments will stop for many, affecting families whose children are leaving approved education or training. This article will break down everything you need to know about Child Benefit, upcoming changes, and how to ensure you receive the support you're entitled to.
Understanding Child Benefit
Child Benefit is a crucial financial lifeline for millions of UK families. Currently, it provides £26.05 per week for your first child and £17.25 for each additional child. Over seven million families rely on this support.
- Who can claim? Anyone responsible for a child under 16, or under 20 if they're in approved education or training (A-Levels, NVQs, home education, but *not* university or BTECs).
- Living arrangements: Typically, the child must live with you, or you must contribute at least the equivalent of Child Benefit towards their upkeep.
- Multiple children: You can claim for multiple children, but only one person can claim per child if two people are caring for them.
- Foster and adoptive parents: Foster parents are eligible if the local council doesn't contribute to the child's care. Adoptive parents can also claim.
- Other carers: You may be eligible if you're caring for a friend's or relative's child.
Child Benefit is administered by HM Revenue and Customs (HMRC). When a child finishes approved education or training, payments end on specific dates: the end of February, May 31st, August 31st, or November 30th, whichever comes first. The upcoming May 31st deadline is particularly important.
The High Income Child Benefit Charge
Higher-earning families should be aware of the High Income Child Benefit Charge. This means that if you or your partner earn over £60,000, you'll repay a percentage of your Child Benefit. For every £200 earned above £60,000, you repay 1%. If your combined income exceeds £80,000, you must repay the entire amount. This is typically settled annually through a self-assessment tax return.
- Good news! A new digital service launching in summer 2025 will allow payment via your PAYE tax code, making it easier.
- Opting out: You can claim Child Benefit without receiving payments to build up National Insurance credits for your state pension, avoiding the charge altogether.
Recent Changes and Trends
The number of families receiving Child Benefit in the UK has remained relatively stable after years of decline. However, groups like Turn2us highlight that many eligible families are not claiming due to a perceived complicated system. The recent increase in the High Income Child Benefit Charge threshold to £60,000 (from £50,000) is a positive step, but awareness of this change is crucial.
In Barnet, for example, the number of families receiving Child Benefit decreased slightly year-on-year, a trend that bucks the national picture. This underlines the importance of staying informed about your eligibility.
What to Do Now
Don't miss the May 31st deadline! If your child has finished approved education or training, update your details with HMRC immediately to avoid delays or interruptions to your payments. Check your eligibility for Child Benefit and the High Income Child Benefit Charge on the HMRC website. If unsure, contact HMRC directly for guidance.
Conclusion
Child Benefit is a vital support for many families. By understanding the rules, deadlines, and recent changes, you can ensure you receive the financial assistance you're entitled to. Don't hesitate to reach out to HMRC if you have any questions or require further clarification. Remember, May 31st is a crucial date for many!
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