What is the Child Benefit Program?
In the United Kingdom, there are many services in place to aid parents in raising their children. One of the top ones is the Child Benefit Program, which is administered by Her Majesty’s Revenue and Customs. Under the program, parents are paid 20.30 Pounds per week for their first child. Any subsequent children and the parents are paid 13.40 Pounds per week each.
One interesting facet of this program was that regardless of how much someone earns, or how much money they have in savings, they are paid the same amount as everyone else. However, that changed in 2013 with new legislation so that the more money you make, the less you get in terms of the program.
The Child Benefit Program has been around for over 60 years, dating back to 1946 when it was termed the Family Allowance and was issued under the Family Allowances Act 1945. Each week, parents would receive .25 Pounds per child, with the exception of their eldest child. In 1952, this amount was changed under the Family Allowances and National Insurance Act, which gave .40 Pounds per child. In 1956, it was raised again to .50 Pounds.
The program proved to be so popular that by 1955, it was issued to 3.25 million families.
In 1977, the term Child Benefit was used for the first time for the programs. Also for the first time, parents could also claim their eldest child on the program. Each child gave the parents Four Pounds per week. In 1991, money for the first child was higher than all subsequent children.
In 2010, it was announced that the program would be eliminated for those families that were a higher-rate taxpayer. Any household with at least one person in the house making over 50,000 Pounds would have the Child Benefit lost by tapering, with someone making 60,000 Pounds having it lost altogether.
Under the Child Benefit Program, even if you are not the parent of the child but you are responsible for that child, you get the money under the program. As long as you are paying for the upkeep of the child, the amount you pay is at least the same as the Child Benefit and the person your child lives with is not receiving the Child Benefit themselves.
The Child Benefit Program is paid through any bank or National Savings and Investment that accepts forms of Direct Deposit. Typically, it is paid every four weeks but it can be paid on a weekly basis if you are also receiving some other form of support like the Jobseeker’s Allowance. If you are a single parent, you can also receive the payment each week.