The Chancellor unveiled the Spring Budget on 6th March, announcing changes to the high-income child benefit that will positively impact over half a million families. The benefit will be amended to consider household income instead of individual income by April 2026. This change has been introduced to remedy a situation in which a family with two parents, each earning £49,000 would receive their full child benefit but a single-parent household with an income of £50,000 would lose some or all of it. The other amendment is to the threshold at which the benefit is lowered to removed. The lower threshold has been raised and the top threshold at which the benefit is completely removed has been increased to £80,000.
In real terms, it means that families with 2 children, who were previously receiving no child benefit could get an extra £2,212 a year and a family of three could receive an extra £3,094 per year. In adapting the child benefit system, the government aims not only to keep more of families’ money in their pockets but to make the entire system more equitable. The extra money families will receive will be a lifeline to help them deal with additional costs and support more parents back into work.
Commenting on the changes, Saqib said:
“Having spoken to the Chancellor about the pressure on parents within my constituency, I am so pleased to welcome the changes to the child benefit announced in the Spring Budget. Over 12,000 families within my constituency will benefit from these plans, keeping more money in their pockets.”
