Understanding child benefit

If you have a new baby or are responsible for bringing up children you might be able to claim child benefit for them.

This can provide a significant boost to your family finances so it’s usually worth applying as soon as possible.

What is child benefit?

Child Benefit is a monthly payment from the Government made to parents or other people who are responsible for bringing up a child. You don’t necessarily need to be the child’s parent but you do need to be responsible for them.

It is not means-tested and it is not generally taxable, although there is a tax charge known as the ‘High Income Child Benefit Charge’ that may be applicable if you claim Child Benefit and have a high income.

If your income is high enough, this charge might be as much as the Child Benefit payment, meaning that claiming it might not give you any financial benefit.

Eligibility for child benefit

You can claim for each child that you are responsible for, even if you are not their parent. Only one person can receive Child Benefit for each child.

You will usually be considered to be responsible for a child if you live with them or you're paying at least the same amount as Child Benefit towards looking after them - for example on food, clothes or pocket money.

Each child must also be either

• Under 16
• Under 20 if they are in approved full-time education or training

If an older child leaves full-time education or training and starts paid work, an apprenticeship or starts receiving certain benefits themselves, your Child Benefit payments for them will stop.

How much will you get?

You will receive a higher rate for an eldest or only child and receive a lower rate for any additional children.

There are two Child Benefit rates, both of which increased in April 2024:

• You will get £25.60 for your eldest or an only child. This means you will get £1,331.20 per year.
• And £16.95 per child for any other children, or £881.40 per child per year.

If you or your partner earns a high income you will also have to pay the High Income Child Benefit Charge. This will effectively mean you receive less financial benefit from Child Benefit.

High Income Child Benefit Charge for higher earners

This was introduced at a rate of 1% of your family’s Child Benefit for every £200 of your income over £60,000, which was raised as of April 2024.

The threshold at which people start paying the Higher Income Child Benefit Charge (HICBC) will increase from £50,000 to £60,000 from 6 April 2024, and the taper will be extended up to £80,000.

These changes will reduce or eliminate HICBC liability for many families.  
 
The taper means, you’ll be charged 1% of your Child Benefit for every £200 of income that exceeds £60,000. If your income exceeds £80,000, the charge is equal to the amount of the Child Benefit payment. Effectively, this means you will not get any financial benefit from claiming Child Benefit if you or your partner earns more than £80,000 individually.

If you or your partner earn between £60,000 and £80,000 you will be liable for the HICBC, but it can still be worth your while to claim as you will still get some child benefit.

The tax charge must be paid by whoever earns the high salary via a self-assessment tax return.

You can opt out of payments but still fill in the claim for Child Benefit. This might still be worth doing as it can help you get National Insurance credits which count towards your State Pension.

Claiming Child Benefit also means your child will get their National Insurance number automatically before they’re 16 and won’t have to apply for it themselves.

Opting back in to Child Benefit payments

If you had previously claimed Child Benefit but opted out of payments – usually because the HICBC charge meant it was not financially worth claiming payments – you can opt back in online from 6 April 2024.

Because Child Benefit can be backdated for three months, some new Child Benefit claims made between April 6th and July 8th 2024 may be backdated into the 2023-24 tax year. The HICBC earning threshold was £50,000 at that point, so you may have to pay some HICBC if you or your partner was earning more than that during the backdated period.

HMRC says that any HICBC liability will be calculated within the 2024-25 tax year, however, avoiding unexpected charges for the 2023-24 tax year.

How to claim child benefit

You can claim Child Benefit, or add an additional child to your claim, at a time that suits you online or on the HMRC app.

HMRC says that a straightforward claim made online (for example where your child is under 6 months old) will be processed quicker, and your first payment could reach your bank account in as little as three working days.

You can make a claim on the Government's website here opens in a new tab/window.

You can download the HMRC app here.

You can also now see your recent Child Benefit payments, proof of your claim, and update your bank details instantly online or in the HMRC app, without needing to call the HMRC.

You can claim Child Benefit 48 hours after you've registered the birth of your child, or once a child comes to live with you.

Child Benefit can only be backdated for up to 3 months though, so you shouldn't leave it too long before you claim.