Child benefit
From Wikipedia, the free encyclopedia
Child benefit (or family allowance, children's allowance) is a social security payment disbursed to the parents or guardians of children. Child benefit is means-tested in some countries.
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[edit] United Kingdom
In the UK, child benefit is administered by Revenue and Customs Child Benefit Office in Washington. As of April 2008, £18.80 per week is paid for the eldest child (including the eldest of a multiple birth) and £12.55 per week is paid per any other children. The same amount is paid without reference to earnings or savings. More than 80% of children are in families also eligible for child tax credit.
The system was first implemented in August 1946 as "family allowances" under the Family Allowances Act 1945, at a rate of 5s per week per child in a family, except for the eldest. This was raised from September 1952, by the Family Allowances and National Insurance Act 1952, to 8s, and from October 1956, by the Family Allowances Act and National Insurance Act 1956, to 8s for the second child with 10s for the third and subsequent children. By 1955, some 5,000,000 allowances were being paid, to about 3,250,000 families.[1]
It was modified in 1977, with the payments being termed "child benefit" and given for the eldest child as well as the younger ones; by 1979 it was worth £4 per child per week. In 1991, the system was further altered, with a higher payment now given for the first child than for their younger siblings.[2]
It was announced in the 2007 pre-budget report that from April 2009 expectant mothers will be able to claim payment from the 29th week of pregnancy. [3]
[edit] Ireland
Child Benefit (Sochar Leanaí) is payable to parents of children under 16 years of age, or 19 years if they are in full-time education. The payment is paid by the Department of Social and Family Affairs.
The payments are as follows (as of April 2007):
| Number of children | Payment (from April 2008) |
|---|---|
| 1-2 | €166 each |
| 3+ | €203 each |
The first and second child will only result in €166 each regardless of total number. After 2, each subsequent child will result in €203. For example, a family with 4 children receives €738 (first two children at €166 each (€332) plus the third and fourth at €203 each (€406) to give €738 total).
Multiple births are a special case. In the event of twins, 150% of the monthly payment is paid for each child. Triplets, or more, are paid the double (200%) rate each; provided that all of them remain qualified (ie. stay in further education until 19). In addition, a special 'once-off' grant of €635 is paid on all multiple births. Further 'once-off' grants of €635 are paid when the children are 4 and 12 years old respectively.
Fradulent claims of Child Benefit are treated very seriously, and can result in 3 years imprisonment or fines of up to €12,697.38.
More information on Child Benefit can be found on the Citizens' Information site.
In addition to Child Benefit, parents who also have a child under the age of 6 are paid the Early Childcare Supplement (Luathchúram Leanaí), valued at €1,100 a year (per child), paid as €275 every three months. More information on the Early Childcare Supplement can be found on the Citizens' Information site.
[edit] Australia
In Australia, Child benefit payments are currently called Family Tax Benefit . Family Tax Benefit is income tested and is linked to the Australian Income tax system. It be claimed as fortnighly payments or as an annual lump sum. It may be payable for dependant children from birth up to the age of 24. Children 16 years or older may alternatively be eligible for Youth Allowance. Parents of dependant children under the age of 16 may also be eligible for Income Support Payments including Parenting Payment and Newstart Allowance for Primary Carers of Children.
Note: The details of payment levels are those applying in 2001. Levels of payments and income test arrangements have been increased quite significantly since then. For an update, go to the website of the Australian Family Assistance Office - http://www.familyassist.gov.au/ - or Centrelink.
On 1 July 2000 the Australian government introduced major changes to the tax system including the introduction of a broad-based Goods and Service Tax (a VAT), substantial income tax cuts, as well as major changes to assistance for families.
These changes to family assistance simplified payments, by amalgamating a number of different forms of assistance, and also provided higher levels of assistance, with reductions in income test withdrawal rates. The new structure combined twelve of the pre-existing types of assistance into three new programs of assistance. The two most important of these are Family Tax Benefit Part A, which assists with the general costs of raising children, and Family Tax Benefit Part B, which is directed to single income and sole parent families. The third programme is Child Care Benefit.
The Family Tax Benefit Part A is paid for dependent children up to 20 years of age, and for dependent full-time students up to the age of 24 (who are not getting Youth Allowance or similar payments such as ABSTUDY and Veterans' Children Education Supplement). It is essentially a two-tier but integrated payment directed to most families with children, with a higher rate for lower income families, including both those in work and receiving income support.
The maximum rate is paid up to a family income of $28,200, and is then reduced by 30 cents for every extra dollar of income, until the minimum rate is reached. Part-payment at the minimum rate is available up to a family income of $73,000 (plus an additional $3,000 for each dependent child after the first). Payments are then reduced by 30 cents in every dollar over that amount until the payment reaches nil.
To receive some Family Tax Benefit Part A, the maximum income levels are $76,256 a year for a family with one dependent child under 18 and $77,355 a year for a family with one dependent 18-24 year old. These thresholds are lifted by $6,257 for each additional dependent child under 18 and $7,356 for each additional dependent 18-24 year old.
Families receiving Family Tax Benefit Part A may also be eligible for extra payments, such as Rent Assistance if renting privately, the Large Family Supplement for four or more children, and Multiple Birth Allowance for three or more children born during the same birth.
Family Tax Benefit Part B provides extra assistance to single income families including sole parents - particularly families with children under 5 years of age. In a couple, if the secondary earner's income is above $1,616 a year, payments are reduced by 30 cents for every extra dollar of income. Parents receive therefore some Family Tax Benefit Part B if the secondary earner's income is below $10,416 a year if the youngest child is under 5 years of age, or $7,786 a year if the youngest child is between 5 and 18 years of age. There is no income test on the primary earner’s income, so in the case of sole parents the payment is universal.
The previous entry referred to Youth allowance and Parenting Payment. These are income support payments for young people and for parents who are not employed and looking after children respectively. Details can be found on the Centrelink website. http://www.centrelink.gov.au/internet/internet.nsf/home/index.htm
[edit] References
- ^ Whitaker's Almanack: for the year 1958, p. 1127. J. Whitaker & Sons, London, 1957
- ^ Call to boost child benefit, Press Association, 2006
- ^ Child Benefit: Charities welcome benefit for pregnant mothers - UK Politics, UK - Independent.co.uk
