Child support calculator: Check how Jeremy Hunt’s turmoil will affect your money

PARENTS will make huge savings after a major change to child benefit, but how much will depend on your circumstances.

The government will increase the threshold at which high-income child benefit is charged from £50,000 to £60,000 from April.

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This means that approximately 170,000 families do not have to pay the levy.

Chancellor Jeremy Hunt unveiled the reform in the spring budget.

Child benefit is paid to parents to help with childcare costs.

Currently, parents can claim £24 per week for their first or only child and an additional £15.90 per week for any additional children.

But if either parent or carer starts earning more than £50,000, they will have to start paying high-income child benefit.

This means you will have to pay back 1% of your child benefit for every £100 of income earned above the £50,000 threshold.

The Chancellor today confirmed that from April the threshold at which parents must pay the levy will be increased to £60,000.

The rate at which the fee is charged will also be halved from 1% of child benefit for every additional €100 earned above the threshold, to 1% for every €200.

As it stands, once you reach a salary of £60,000 you will have to pay back the full amount of child benefit.

However, from April, The Chancellor announced that this amount will increase to £80,000, to ensure fewer parents are caught.

In total, the government estimates that 485,000 families will earn an average of £1,260 towards the cost of raising their children in 2024/2025 and that 170,000 families will not have to pay tax.

If you’re wondering how much you’ll benefit from the change, the government has its own calculator.

This allows you to calculate how much you may have to repay if you also have to pay child benefit with a high income.

You can find it on the gov.uk website here.

After you click through, you will be asked a series of questions to determine how much you are entitled to.

It is yet to be updated following Jeremy Hunt’s announcement and The Sun has asked the DWP when it expects this to happen.

Child benefit calculation

How much you will earn in April depends on your annual income, and there is a way to calculate this.

For example, someone with one child receives £24 per week, or £1,248 per year.

You must then calculate how far you exceed the threshold. So if you make $65,000, that’s $5,000.

You then need to divide that by €200, which is the amount you lose for every 1% you earn above the €60,000 threshold.

In this example, €5,000 divided by €200 is 25.

You will then lose 25% if your child receives an allowance.

The final step is to figure out what that means for you.

If you have one child, that is 25% of € 1,248, or € 312. This is the amount you have to repay.

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What is child benefit for high incomes?

If either parent or caregiver starts earning more than £50,000, they will have to start paying high-income child benefit.

This means you will have to pay back 1% of your child benefit for every £100 of income earned above the £50,000 threshold.

Once you reach £60,000 in annual income, you must pay back the full amount of child benefit.

Parents have been caught out by the complicated rules and extra costs and have ended up with bills running into thousands of pounds.

It is up to parents to notify HMRC if they are liable for the costs and they must file a tax return to pay them.

What is child benefit and who is eligible for it?

Child benefit is paid to parents to help with childcare costs.

Payments are usually made every four weeks, and if you claim child benefit, you will also receive national insurance contributions that count towards your state pension.

Currently, parents can claim £24 per week for their first or only child: £96 per month and £1,248 per year.

But from April, the rate for your eldest or only child will increase to €25.60 per week – which works out to around €102.40 per month or €1,334.86 per year.

For any additional children, they can claim an additional amount of £15.90 per week per child – £63.60 per month and £826.80 per year.

And from April you will get £16.95 per week for each other child, which works out to £67.80 per month and £883.82 per year.

You will normally be eligible for child benefit if you live in Great Britain and are responsible for a child under the age of 16.

Parents can also claim maintenance for a child under the age of 20 if he/she is undergoing approved education or training.

When two or more people share the responsibility of caring for a child, it can only be claimed by one person.

You are responsible for a child if you live with the child or if you pay at least the same amount as child benefit for its care.

This may mean paying the same amount of child benefit for food, clothing or pocket money.

Please note that eligibility changes if a child goes to hospital or care and if your child starts living with someone else.

You will normally receive child benefit for eight weeks after your child has gone to live with a friend or relative, as long as he or she does not submit an application.

But it may take longer if you contribute to your child’s living expenses.

Foster parents can also claim child benefit, as long as the municipality does not pay anything for their housing or subsistence.

Legal guardians or parents who adopt a child can also apply for the benefit, but the child must live with them.

You can only make a claim if you leave Britain for a short period of time, for example if you are going on holiday or for medical treatment.

If you are unsure of your eligibility, you can contact the Child Benefit Agency.

In the meantime, here are four ways to avoid the child benefit trap but still earn £1,248 a year in free money.

Plus, here are 17 big money changes in 2024 and what they mean for you – including an £1,800 pay rise for millions and free childcare.

Do you have a money problem that needs to be solved? Get in touch by emailing money@the-sun.co.uk.

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