Can I Claim Child Benefit And How Much?

Child Benefit is probably the most well known financial support system for parents. It has been available since August 1946 when it was introduced under the Family Allowances scheme. It became Child Benefit in 1977, the name it retains today.

A Benefit For All Children?

Child Benefit is still available to parents of all children in the UK, although is soon to change. From the beginning of 2013, children with a parent living at home that earns enough to be a higher rate taxpayer will no longer qualify.

Some Families Win, Some Families Lose

This has angered many parents and political groups, who argue the system is flawed as a family which has one parent at home looking after the children, and the other parent earning just 50p over the 40% tax threshold would get nothing, whereas if the parent earned £1 less they would get a full allowance.

In addition, a family with two working parents, each earning 50p under the 40% tax threshold will get the full benefit. Of course, some parents who lose the entire allowance will feel aggrieved, whilst others with a very similar family income will be unaffected. The reality is that this probably will not change, so fair or not, we’re stuck with it.

Support Up to Sixteen

For those that do qualify, Child Benefit is available for parents of children up to 16 years old. Once the child reaches 16, the rules become a little more complicated, more on that later.

The Child Benefit Rates

The amount you can claim is per child, and the first eligible child can claim more than subsequent children. Once the eldest is no longer eligible for Child Benefit, the second child can claim the higher rate and so on.

The rate for the eldest child is £20.30 per week at the time of writing (November 2011), and subsequent children will allow the parent to claim an additional £13.40 per child per week. Therefore the weekly claims for families would be as follows:

Number of children	Weekly Claim Amount
1	£20.30
2	£33.70
3	£47.10
4	£60.50
5	£73.90

Source: Direct.gov

Paid Straight Into The Bank

Most people are paid monthly electronically into their bank accounts, so for people paid in this way, the amount will be four and a bit times the above on a monthly basis.

The Big Freeze

Normally the rates increase annually so that inflation does not erode the value of the Child Benefit entitlement, however in 2011 it was decided to freeze the rates for three years as a result of the savings the government need to make, so the above table should remain accurate until at least 2014 unless the policy changes.

Single Parents And Child Benefit

Of particular relevance for single parents is the rules surrounding where parents share the children. If one parent is responsible for all of the children, the same rules apply.

On the other hand, if some of the children live with mum and the others with dad, it should be possible for each to claim the eldest child rate for the eldest child in their care.

It is important to note that if you have one child, only one parent can claim, even if the custody of the child is split.

New Partners Change Things

Similarly if as a single parent you meet someone new with children and move in together, only one claim for the new household can be made at the eldest child rate, even though the children do not all share the same parents.

Some Children Can Claim Past 16

Once children reach the age of 16, they may or may not be able to continue to be eligible for support, depending on their circumstances. If the child remains in recognised education (school, college and university for example) they can usually continue to receive Child Benefit until they are 20.

This is also true with some other training, however it is too complex to go into here; you can find out more from the Child Benefit helpline on 08453 021 444, or on the Directgov website here.

Child Benefit And Leaving Education

You can also apply to extend Child Benefit for 20 weeks if your child leaves education at 16 or over but has made steps to enter the world of work or another type of education which does not qualify for the above method of continuing to claim. They will normally need to be registered with an official careers service or be waiting to join Her Majesty’s Forces.

It is important to note that the extension is not automatic so you will need to apply. You can do so online on the HMRC website.

In summary, Child Benefit is available to virtually all parents of children under 16 until the beginning of 2013 when households with a higher rate tax payer will usually lose the entitlement. Families able to claim will receive £20.30 for the first qualifying child and £13.40 per week for each subsequent child. Research eligibility beyond the age of 16, as the rules become more complicated, particularly for children who leave the traditional education system.