Who gets child benefit?
Child benefit is a tax-free payment received by the parents of all children. It is usually paid every four weeks but in some cases can be weekly. The payment is awarded regardless of the family's income or savings. You can claim if your child is under 16, your child is over 16 and in education or training or your child is 16 or 17 and is regist-ered for work. It stops at 18.
What is it worth?
Parents are entitled to £20.30 a week for their eldest child and £13.40 a week for each of their other children.
What is changing?
From 2013, child benefit payments will no longer be paid to families which contain a higher rate taxpayer.
This means that any families in which either partner earns more than £44,000 a year will no longer be entitled to claim. It is estimated that 1.2 million families will be affected.
If both parents in a household work but each earn less than £44,000, they will retain the right to the benefit.
How will the new system work?
Accountants have expressed concern that the changes will make the tax system excessively complicated and result in further errors in workers' tax calculations.
The reforms will see more than a million letters sent to higher-rate taxpayers currently eligible for child benefit, the Treasury said. These people will be identified through the PAYE and self-assessment tax systems. They will be required to confirm that they receive the benefit, so the tax authorities can amend their records.