New Child Benefit System Increases Payments
Hundreds of thousands of parents in the UK are set to receive a financial boost starting today as an overhaul of the child benefit system comes into effect. The monthly payment has been increased to £25.60 a week for one child and an additional £16.95 a week for each additional child, providing significant support for families.
Changes to Income Thresholds
Under the updated rules, parents can receive the full child benefit payment as long as both parents earn below £60,000, with the upper limit for cancelling out the benefit raised to £80,000. This adjustment will result in half a million families seeing an average of £1,260 extra paid out through child benefit, benefiting 170,000 families who will no longer have to repay the benefit.
Addressing Unfairness in the System
The Child Benefit system has faced criticism for its perceived unfairness, where one parent's income just slightly over the threshold could lead to reduced payments, regardless of the other parent's income. Proposed changes aim to assess households based on overall income, potentially taking effect in 2026.
Who is Eligible for Child Benefit?
Child benefit is designed to assist parents with the costs of raising children, covering expenses such as childcare, food, bills, and household running costs. Eligibility criteria include living in the UK and being responsible for a child under 16, with additional support available for children under 20 in approved education or training.
