Enhanced child benefit payments set to commence

Employer Comments Off on Enhanced child benefit payments set to commence

There was a significant uplift for families from 6 April as the annual entitlement for one child was raised. Additional child payments also increased.

HMRC has announced that, from 6 April 2024, millions of UK families receiving Child Benefit will see their payments increase. In a move to support households, the Government has raised the annual entitlement for families with one child to £1,331, marking an increase of £83.20.

Similarly, payments for additional children will now reach up to £881 per year, with no restriction on the number of children a family can claim for.

The revised scheme outlines payments of £102.40 every four weeks (£25.60 weekly) for the first or only child and £67.80 (£16.95 weekly) for each subsequent child.

HMRC has streamlined the process for families with existing claims, ensuring continued direct bank deposits without the need for contact.

From April 2024, the High Income Child Benefit Charge (HICBC) won’t affect families where the highest earner earns up to £60,000 – up from £50,000. For incomes between £60,000 and £80,000, the benefit reduces gradually, aligning with the HICBC for earnings above £80,000.

Parents earning over £50,000 are advised to adjust their Child Benefit claims before April to avoid potential charges for the 2023/24 tax year, while new thresholds apply to claims from April 2024 onwards.

Laura Trott, Chief Secretary to the Treasury, said:

“We are ending the unfairness in the Child Benefit system, and as a result, 170,000 families will no longer have to pay back Child Benefit, and nearly half a million families will save an average of around £1,300 next year.”

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