IMPORTANT FACTS- Child Benefit
Child Benefit is a tax-free payment that you can claim if you’re responsible for a child.
Child Benefit payments usually stop when your child reaches 16, unless they are in education or training that counts for Child Benefit. For example, an advanced course at higher education level – such as a degree – doesn’t count.
You can’t get Child Benefit for your child once they reach the age of 20.
There are two separate amounts, with a higher amount for your eldest (or only) child.
You get:
- £21.05 a week for your eldest child
- £13.95 a week for each of your other children
How it is paid
Child Benefit can be paid into any account that accepts Direct Payment. It’s usually paid every four weeks, but it can be paid weekly if you are getting certain benefits.
Being high income
From January 2013, the benefit was reduced when someone in the household is earning more than £50,000. It is reduced gradually, by 1% of the child benefit for every £100 earned over £50,000, so will not be totally lost until you earn £60,000 or more.
Benefit Cap
Child Benefit falls under the Benefit Cap, so a household already receiving £20,000/ £23,000 a year on benefits may not be eligible for Child Benefit.
IMPORTANT FACTS-Employment and Support Allowance
- Employment and Support Allowance provides financial help to people who are unable to work because of illness or disability- this includes women who are pregnant. It also provides personalised support to those who are able to work.
- Employment and Support Allowance offers you personalised support and financial help, so that you can do appropriate work, if you are able to.
- It gives you access to a specially trained personal adviser and a wide range of further services including employment, training and condition management support. This is to help you manage and cope with your illness or disability at work.
- Employment and Support Allowance involves a medical assessment called the Work Capability Assessment. This assesses what you can do, rather than what you cannot, and identifies the health-related support you might need.
- Most people claiming Employment and Support Allowance will be expected to take steps to prepare for work. This includes attending work-focused interviews with their personal adviser.
Under Employment and Support Allowance, if you have an illness or disability that severely affects your ability to work, you will get increased financial support. You will not be expected to prepare for a return to work. You can volunteer to do so at any point if you want to.
Statutory Maternity Pay
To help you to take time off work before and after your baby is born, you may be able to get Statutory Maternity Pay (SMP). This is a weekly payment from your employer
To qualify for SMP you must have been:
- employed by the same employer continuously for at least 26 weeks into the 15th week before the week your baby is due (the qualifying week)
- earning on average an amount which at least equals the lower earnings limit (currently £116 per week)
If you qualify for SMP, it is paid:
- for the first six weeks at 90% of your average gross weekly earnings with no upper limit
- for the remaining 33 weeks at the lower of either the standard rate of £151.20, or 90% of your average gross weekly earnings (whichever is lower)
Your employer will usually pay you in the same way and at the same time as your normal wages. It can be paid for up to 39 weeks.
Statutory Paternity Pay
When your wife, partner or civil partner gives birth or adopts a child, you may be entitled to Ordinary Statutory Paternity Pay (SPP).
To qualify for SMP you must have been:
- employed by the same employer continuously for at least 26 weeks into the 15th week before the week your baby is due (the qualifying week)
- earning on average an amount which at least equals the lower earnings limit (currently £116 per week)
If your average weekly earnings are £116 or more (before tax), Ordinary Statutory Paternity Pay is paid for one or two consecutive weeks at £151.20 or 90% of your average weekly earnings if this is less.
Your employer will pay Ordinary Statutory Paternity Pay to you in the same way and at the same time as your normal wages.
Ordinary Statutory Paternity Pay is treated as normal pay and so they’ll also deduct tax and National Insurance as usual.
Maternity Allowance
If you’re pregnant or have a new baby but don’t qualify for Statutory Maternity Pay (SMP) from any employer, you may be able to claim Maternity Allowance (MA) through Jobcentre Plus.
You might get Maternity Allowance if:
- you’re employed, but not eligible for Statutory Maternity Pay
- you’re registered self-employed
- you have very recently been employed or self-employed
Maternity Allowance pays a standard weekly rate of £151.20 or 90% of your average gross weekly earnings (before tax), whichever is the smaller. MA is paid for a maximum period of 39 weeks.
Maternity Allowance can be paid every two weeks or every four weeks directly into your bank or building society.
Tax credits and Disability Living Allowance are not affected by Maternity Allowance.
But you cannot claim Maternity Allowance and Job Seeker’s Allowance at the same time, and other benefits such as Income Support may be reduced or stopped.
Tax credits
VIDEO- This video gives a clear explanation of tax credits and how they work (with catchy music).
Tax credits
Tax credits are payments from the government. They aren’t taxable. You may get one of the following, or both:
– Working Tax Credit
Working Tax Credit is based on the hours you work and get paid for, or expect to be paid for. You can claim whether you’re an employee or a self-employed person, but unpaid work doesn’t count.
– Child Tax Credit
Child Tax Credit is paid to you if you are responsible for at least one child or young person who normally lives with you. You don’t have to be working to claim.
How much do you get?
The amount of tax credits you get depends on things like:
- How many children you have living with you
- If you live with someone as a couple
- Whether you work, and how many hours you work
- If you pay for childcare
- If you or any child living with you has a disability
- If you’re aged 50 or over and are coming off benefits
- Your payments also depend on your income. The lower your income, the more tax credit you can get.
You’ll usually need to make a joint claim for tax credits if you are any of the following:
- married
- in a civil partnership
- living together as if you were married or in a civil partnership
You can only make a single claim if you don’t fall into one of these groups.
The Tax Credit Office will pay tax credits directly into your account.
You must work a certain number of hours a week to qualify for Working Tax Credits:
| Circumstance | Hours a week |
|---|---|
| Aged 25 to 59 | At least 30 hours |
| Aged 60 or over | At least 16 hours |
| Disabled | At least 16 hours |
| Single with 1 or more children | At least 16 hours |
| Couple with 1 or more children | Usually, at least 24 hours between you (with 1 of you working at least 16 hours) |
Child Tax Credit has been replaced by Universal Credit for most people.
You can only make a new claim for Child Tax Credit if you:
- get the severe disability premium, or are entitled to it
- got or were entitled to the severe disability premium in the last month, and you’re still eligible for it
If your child is 16, you can claim up until 31 August after their 16th birthday. If they are in approved education or training, you can claim until their 20th birthday.
If you cannot make a new claim for Child Tax Credit, you may be able to apply for Universal Credit (or Pension Credit if you and your partner are State Pension age or over).
Additional benefits
Some people may also be eligible for some of these additional benefits.
- Statutory Adoption Pay
Statutory Adoption Pay is a weekly payment you get from your employer to help take time off work when you adopt a child. It functions a little like Statutory Maternity Pay.
- Guardian’s Allowance
You could get Guardian’s Allowance if you’re bringing up a child whose parents have died. You may also be eligible if there’s one surviving parent.
The Guardian’s Allowance rate is £17.90 a week. You get it on top of Child Benefit and it’s tax-free.
- Sure Start Maternity Grant
If you’re on a low income and getting certain benefits or tax credits, you could get a Sure Start Maternity Grant. This is a one-off payment of £500 to help towards the cost of maternity and baby items. The grant is tax free and you don’t have to repay it.
- Free milk, infant formula, vitamins, fruit and vegetables (parents section)
You may be entitled to free milk, fresh fruit and vegetables, infant formula and vitamins under the Healthy Start scheme if you’re on a low income and getting certain benefits or tax credits, or are under 18.
| NUMBERS TO REMEMBER:– Child Benefit: £21.05 a week for your eldest child £13.95 a week for each of your other children |