Are You Earning Less Than £80,000? Learn How to Claim Child Benefit Worth Up to £3,094

Child Benefit is a government scheme designed to provide financial support to parents and caregivers who are responsible for children under 16 years of age, or under 20 if the child is continuing their education or training. This payment helps families manage the costs associated with raising children, offering significant relief for many households across the UK.

If you are earning less than £80,000 annually, you may be eligible for this benefit, which can amount to £3,094 per year. This article will explain who qualifies, how much you can receive, and how you can apply for this important financial assistance.

Eligibility Criteria for Child Benefit

To qualify for Child Benefit, the following conditions must be met:

1. Your child must be under 16 (or under 20 if they are still in education or training).
2. The child must live with you, or you must be financially responsible for their care.
3. Your income should be less than £80,000 per year. However, those earning above £60,000 may still qualify, but they may face a tax charge called the High Income Child Benefit Charge (HICBC).

It’s important to note that only one parent or guardian can claim the benefit for each child. Therefore, families need to decide who will be the claimant.

How Much Can You Receive in Child Benefit?

The amount of Child Benefit you receive depends on the number of children in your care:

• For one child: You will receive £25.60 per week, which adds up to £1,331.20 per year.
• For two children: You will get an additional £16.95 per week for the second child, totaling £2,212.60 per year.
• For three children: Families with three children will receive a total of £3,094 per year.

Starting from April 2024, there will be an increase in the weekly rates:

• For one child: £26.05 per week.
• For additional children: £17.25 per week.

By April 2025, the payments will increase further, and families can receive:

• £1,354.60 per year for one child.
• £2,236 per year for two children.
• £3,117.40 per year for three children.

Understanding the High Income Child Benefit Charge

If your income is above £50,000, you may have to pay the High Income Child Benefit Charge (HICBC), which means that you will have to pay back some of the benefit through your taxes.

• If your income exceeds £60,000, you will have to pay the full amount of Child Benefit back in tax.
• If your income is between £50,000 and £60,000, you may be required to pay a part of the benefit back, depending on the exact amount you earn.

Even if you are subject to this charge, HMRC advises parents to still claim the benefit, as it provides National Insurance credits, which count toward your State Pension. In addition, your child will automatically receive a National Insurance number at age 16.

How to Apply for Child Benefit

Applying for Child Benefit is simple and can be done in a few easy steps:

1. Register your child’s birth – If you have recently had a child, you can apply for Child Benefit within 48 hours of registering their birth.
2. Complete the application form – You can get the CH2 form online through the HMRC website or from your local registry office.
3. Submit the form – You can submit the form online or by post to HMRC.
4. Wait for payments – After your application is processed, you will begin receiving payments every four weeks.

HMRC recommends backdating your application if you haven’t claimed Child Benefit yet. Claims can be backdated for up to three months, meaning you may be able to receive payments for the previous months if you meet the eligibility criteria.

Important Changes in 2024 and 2025

In April 2024, there will be changes to the Child Benefit payment rates. The government has confirmed an increase of 1.7% for most benefits, including Child Benefit. This increase will help families with the rising cost of living.

By April 2025, Child Benefit payments will see further increases, with families potentially receiving higher amounts for each additional child.

Conclusion

If you earn less than £80,000 a year, it’s crucial that you check whether you’re eligible for Child Benefit. With up to £3,094 available per year, it’s a financial boost that can help families manage the costs of raising children. The application process is simple, and payments can be backdated for up to three months.

Even if your income exceeds £60,000, it is still worth applying for Child Benefit, as you may qualify for National Insurance credits toward your pension. Don’t miss out on this opportunity to ease your financial burdens—apply for Child Benefit today!