North East UK news Child Benefit payments to rise from April 2021 MetiNews.Com

MetiNews.Com - The monthly benefit is rising with inflation and the new rates will be paid after April 6, 2021

North East UK news Child Benefit payments to rise from April 2021 MetiNews.Com

MetiNews.Com - The monthly benefit is rising with inflation and the new rates will be paid after April 6, 2021

North East UK news  Child Benefit payments to rise from April 2021 MetiNews.Com
23 February 2021 - 14:15

Breaking News ! Child benefit payments are set to rise in April, offering millions of households a cash boost shortly after kids return to school. The child benefit payment is rising to £21.15 a week for a family's first child and a further £14 per child for families with multiple children, Mirror Online reports. The monthly benefit is paid to families on a Monday or Tuesday. Child benefit is one of many welfare payments which will change on April 6, when the new financial year starts. As well as child support, the state pension will rise by 2.5% and Universal Credit 0.5% - although this could theoretically fall with the £20 uplift to be scrapped. How child benefit payments change in April 2021 For an eldest or only child, households currently receive £21.05 per week plus £13.95 for any additional children. From April 12, this will increase to £21.15 per week and £14 per week for additional children. This is an increase of 10p and 5p respectively per week and means the new monthly payments will be £84.60 for an eldest or only child and £56 for any additional children. The payment comes through every four weeks on a Monday or a Tuesday and the claimant will also be awarded national insurance credits which can count towards their state pension. However, if a claimant or their partner earns more than £50,000 a year, a fraction of it must be repaid at the end of the tax year.

. If over £60,000 is earned in a year, the whole amount must be repaid. Child benefit for higher-income families In 2013, former chancellor George Osborne introduced new rules to child benefits. He scrapped 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 penalises households where one parent earns the most money. This is because it is based on the highest earner's salary rather than the family income. For example, a family where one parent earns £50,000 and the other earns nothing would be immediately subject to the tax. But if both parents earned £25,000 each, they wouldn't have to pay child benefit back, even though the household income is the same as where one parent is working. Even more confusingly, a family where both parents earn £49,999 would get full child benefit, even though the family income is almost £100,000. If you're earning over the threshold, you need to complete a self-assessment at the end of each tax year. HMRC will then calculate how much you owe, and bill you for the outstanding balance. Even though the money is returned, you'll still get a national insurance credit towards 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 opt out officially to avoid losing any credits. When you receive the form for child benefit, you have two options. You can either take the money and pay it back as extra income tax, or you can untick a box on the application form for a "zero rate" child benefit. This means that you'll still be able to claim the credits without actually receiving the cash. Read More Related Articles Universal Credit uplift difference between families feeding children or not, charity boss warns Read More Related Articles Benefit claimants issued reminder from DWP about changes to Post Office account card

Source = MetiNews.Com

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North East UK news Child Benefit payments to rise from April 2021 MetiNews.Com


North East UK news Child Benefit payments to rise from April 2021 MetiNews.Com


North East UK news Child Benefit payments to rise from April 2021 MetiNews.Com


North East UK news Child Benefit payments to rise from April 2021 MetiNews.Com

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