Cost of living: Warning to parents that Child Benefit could be stopped or reduced for these reasons

Parents claiming Child Benefit payments are being warned their benefit could be stopped or reduced for several reasons. Around seven million people claim Child Benefit, which sees parents paid £24 a week for their first child and £15.90 per week for any additional children.

The monthly cash boost is the Government’s way of acknowledging the extra costs involved with raising a child. A study by Moneyfarm revealed it can cost anywhere from £160,000 to £190,000 to raise a child to age 18 in the UK.

However, there are rules when claiming Child Benefit and sometimes parents are caught out. This could cause your payments to stop.

Here is a list of reasons why Child Benefit can be stopped or reduced.

Reasons Child Benefit payments can be stopped or reduced

You or your partner start earning more than £50,000

If you or your partner start earning more than £50,000, you will start paying the High Income Child Benefit Charge (HICBC) so you will need to pay back some of the money you get. You have to pay back 1 per cent of the Child Benefit you receive for every £100 earned above £50,000.

The rules mean you and your partner can both earn up to £50,000 - so £100,000 annually - before having to pay anything back. However, if one of you earns more than £60,000 , then you cannot claim any Child Benefit.

If your partner is earning over £60,000 but you are not working or earning less than £113 a week, then you will still be able to claim.

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