HMRC will hand 'free cash' to parents who earn under £60,000

HMRC has shaken up the Child Benefit rules and it means parents earning less than £60,000 annually can claim up to £2,214 per year - in a major Cost of Living boost.

A HMRC rule change for parents who earn under £60,000 will hand them FREE CASH. HMRC has shaken up the Child Benefit rules and it means parents earning less than £60,000 annually can claim up to £2,214 per year - in a major Cost of Living boost.

This is due to an increase in the income threshold for Child Benefits payments eligibility, rising from £50,000 to £60,000. John Pears, CEO of Lowell, said: “While these credit solutions can offer short-term relief, worryingly, 69 per cent of those surveyed using credit products are concerned about the challenge of repaying them."

Child Benefit is the Government's way of acknowledging the costs involved in raising a child. It's paid monthly to anyone responsible for children under the age of 16 (or under 20 if they stay in certain full-time education or unpaid training).

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Mr Pears said: “For some, this could lead to longer-term financial difficulties, including a negative impact on their credit score, which could affect their ability to be approved for credit in the future. As 66 per cent of parents surveyed said they had not reached out for support or advice for back-to-school costs, we want to reassure parents that there are other, often more manageable ways to get support with these costs."

If you (or your partner) earn £60,000 a year or under, you can claim the full entitlement of Child Benefit if the child you're applying for lives with you, or if you're paying at least the same weekly amount as the benefit towards looking after them.

Mr Pears added: “For example, local authorities or the school directly can provide tailored advice based on your situation, such as uniform grants and subsidiaries towards laptops and tablets for families who require support.” He continued: “For many families across the UK, associated back-to-school costs such as uniforms can be difficult to afford, meaning many parents across the UK can find themselves worrying about their finances.

"Though credit can be a tool for helping to spread these costs, many credit products have high interest rates, and if unforeseen expenses occur, keeping up with credit repayments can become increasingly difficult. With this in mind, we wanted to provide parents with some insights and resources to help manage school expenses in the coming weeks."