Child Benefit increases: How much is Child Benefit going up this month?

Martin Lewis explains who is eligible for Child Benefit

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The next tax year starts on April 6, 2021, and there will be a number of changes to benefits, including Child Benefit. The number of families claiming Child Benefit has decreased in recent years, even with the increased employment rate, due to the pandemic and the increase in Child Benefit allowance. How much is Child Benefit going up this month?

Anyone who is responsible for bringing up a child under 16 (or under 20 if they stay in approved education or training) is entitled to Child Benefit.

Only one person can claim the benefit for a child, and it will be paid into their account every four weeks.

It doesn’t matter how many children you have, you can claim Child Benefit for them all.

Those who claim Child Benefit are also entitled to National Insurance credits which count towards your State Pension, and the child will automatically get a National Insurance number when they’re 16 years old.

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You don’t have to claim Child Benefit payments if you feel you don’t need them.

The Government advises even those who choose not to get Child Benefit payments to fill in and send off the claim form and state that you won’t be claiming.

If you claim Child Benefit and you or your partner earn more than £50,000, you may have to pay back some of the benefits in tax.

This tax is called the High-Income Child Benefit Tax Charge and it was brought in in January 2013.

It does not matter if the child living with you is not your own child – you will be taxed if you earn over this amount.

Claimants must report any change of circumstances to the Child Benefit Office.

How much is Child Benefit now?

At the moment, Child Benefit is £21.05 per week for the eldest or only child.

Parents and guardians get a little less for additional children at £13.95 per child.

In the UK, the average number of children for whom Child Benefit is being received per Child Benefit recipient family is 1.74.

The area with the highest average is Northern Ireland (1.83 children) and the area with the lowest average is Scotland (1.65 children).

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How much is Child Benefit going up this month?

Child Benefit is increasing slightly from April 12, 2021, the Government announced yesterday.

The weekly benefit is increasing from £21.05 to £21.15 for the eldest child – that’s a 10p difference.

For each subsequent child, the rate is increasing from £13.95 to £14 per week, a 5p boost.

The change doesn’t sound like much, but it means the new monthly payments will add up to £84.60 for one child and £56 for additional children.

This isn’t the first time the Government has increased Child Benefit in recent years.

The Child Benefit Statistics Annual Release from August 2020 revealed why Child Benefit rose between the financial years of 2016/17 and 2019/20.
It explains: “Child Benefit has risen by 1.7 percent in line with Consumer Price Index (CPI) in 2020/21.

“This has resulted in Child Benefit increasing from £20.70 to £21.05 per week for the eldest child, and for each subsequent child increasing from £13.70 to £13.95 per week.”

Surprisingly, the number of Child Benefit claimants continued to fall when the pandemic started – even though the allowance increased and the number of families exempt from the HICBC probably increased as a result of furloughed jobs in the pandemic.

The release added: “There may be a number of factors leading to a further fall in Child Benefit claimants.

“This includes provisional data for England and Wales indicating a fall in birth rates and take-up of new Child Benefit claims interrupted by the effects of national lockdowns.”

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