Legal Entitlement to Child Benefit and Tax Credits

Child benefit is available to anyone with children under 16 and is payable either monthly or weekly. There is no means test, which means that it is available regardless of your savings or income. Parents and guardians can claim for child benefit for children under the age of 16; over the age of 16 and under the age of 18 but in qualifying education or training; or registered for work, training, or education with an ‘approved body.’

How Much Is Child Benefit?

This depends on how many children you have. If you have one child, the rate at the time of writing is £20.30 per week. If you have more than one child, each subsequent child (not including the first born) will attract £13.40 each per week. Most people receive this money once a month, although those on benefits such as Income Support, Income-Based Jobseeker’s Allowance, Employment and Support Allowance are able to receive child benefit weekly. Single parents are also entitled to receive child benefit on a weekly basis.

Does My Child Have To Live With Me?

It is not necessary for your child to live with you in order for you to claim, although you will have to show that you contribute towards the upkeep of your child, and that you pay at least the amount of child benefit towards that upkeep. If a child lives between two households, only one person claim for child benefit on behalf of that child – it is not possible to claim twice or split entitlement.

Child Tax Credits

If you are working, and are responsible for a child (or children) you may be entitled to receive child tax credit. Those who are on low wages (approximately less than £17400 per annum) may be eligible for working tax credit. Contrary to popular myth you do not actually need to have children in order to claim working tax credit.

Nine out of ten families in the UK qualify for tax credits. The amount that you receive will depend on several factors: the number of children in your household; the amount of hours you work each week; whether you pay for childcare costs; whether you are over 50 years old and whether any of your children suffer from a disability.

Child Trust Funds

As of 1st September 2002 the government introduced an initiative for a savings and investment account for all children born on or after that date. Every eligible child receives a voucher for £250 that is put into an account which cannot be accessed until they reach the age of 18 years old. It is possible to make a contribution to this account yourself, as long as no contributions amount to more than £1,200 per annum. For the purposes of this calculation, the year runs from birthday to birthday. On the child’s seventh birthday, the government make a further contribution of £250, with an extra £250 for families on low incomes.

The money will grow considerably over time, especially if you are able to make contributions yourself. For example, a child trust fund savings account opened now, with £100 per month contributions (maximum) and the qualification for £250 aged seven could amount to a sum on the child’s 18th birthday of £29,000, if the interest rate is 3.5%.