Family allowances are available for families with dependents up to the age of 16 – or 20 if they are in full-time studies or enrolled in a government approved training course
The government grant, designed to help cover costs associated with a dependent, increases to £ 21.15 per week for the first child.
Those with more than one child will receive £ 14 per week from April 12th.
The benefit is paid monthly, on a Monday or Tuesday, and there is no limit to the number of children a parent or guardian can request.
The new fiscal year begins April 6 and comes with a host of payment changes for benefit recipients.
In addition to child support, state pension will increase by 2.5% and universal credit by 0.5% – although this could theoretically decline with the £ 20 markup to be removed, the Mirror reports.
How are family allowances changing?
For an older or only child, households currently receive £ 21.05 per week plus £ 13.95 for any additional child.
From 12 April this amount will increase to £ 21.15 per week and £ 14.00 per week for additional children.
This is an increase of 10p and 5p per week respectively and means the new monthly payments will be £ 84.60 for an older or only child and £ 56.00 for any additional child.
The payment comes every four weeks on a Monday or Tuesday and the applicant will also receive national insurance credits which can be counted towards their state pension.
However, if an applicant or his partner earns more than £ 50,000 per year, a fraction of it must be repaid at the end of the tax year.
This is at a rate of 1% for every £ 100 earned over £ 50,000. If more than £ 60,000 is earned in a year, the full amount must be refunded.
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High Income Child Benefit Fee Explanation
In 2013, former Chancellor George Osborne introduced new rules for child benefits.
He dropped the initiative for anyone earning £ 60,000 a year or more and reduced the payout for anyone earning between £ 50,000 and £ 60,000.
However, critics say the cap penalizes households where one parent earns the most money.
Indeed, it is based on the salary of the highest employee rather than on family income.
For example, a family where one parent earns £ 50,000 and the other earns nothing would be immediately subject to tax.
But if both parents earned £ 25,000 each, they would not have to repay child benefit, even if the household income is the same as that of a working parent.
Even more confusing, a family with both parents earning £ 49,999 would receive full child benefit, even if the family income is almost £ 100,000.
If you earn more than the threshold, you must complete a self-assessment at the end of each tax year. HMRC will then calculate the amount you owe and bill you for the outstanding balance. Even if the money is returned, you will still receive a national insurance credit for your state pension.
However, be careful when you opt out as you could risk your state pension credits.
If you earn above the threshold (£ 60,000), you must officially unsubscribe to avoid losing credits.
When you receive the family allowance form, you have two options.
You can either take the money and refund it as additional income tax or uncheck a box on the “zero rate” child benefit application form.
This means that you will still be able to claim the credits without actually receiving the money.