Parents on up to £80,000 eligible for child benefit

Benefit will not be taken away entirely until an individual earns £80,000. Changes are set to help 170,000 families with children under 16. But the system has been criticised for being unfair to households with one high-earning parent. Under child benefit, parents receive £24 a week for one child and £15.

90 for each additional child. Under the current system, if one partner earns more than £50,000, child benefit starts being gradually withdrawn. This threshold figure had not changed since 2013, despite childcare costs and the cost of living soaring over the last few years. The chancellor has now raised the lower threshold, and said that the top of the taper at which the benefit is withdrawn completely will go up to £80,000.

By April 2026, the plan is to move it to a system of household income, not that of individuals. But Mr Hunt cautioned that this would not be a “quick fix”. Dad-of-two David Stuart, from Whitburn in Scotland, welcomed the changes announced to child benefit. Budget changes mean parents will have to pay up to 50% of their child benefit.

The change will be a relief to many parents, especially those with young children. If you are unsure about whether or not you should pay, you can go to the Office for Budget Responsibility website. Labour leader Sir Keir Starmer said the cost of childcare was still a huge challenge.

Read More