Work benefits which could make the parents ineligible for DWP the child benefits from fuel allowance insurance

Child Benefit, one of the most comprehensive government benefits to help with the costs of raising children, could bring parents more than £17,000 over the first 16 years of a child’s life if a parent’s income falls below the current cap of £80,000 .

However, few know that this cap doesn’t just take into account the number on a parent or guardian’s payslips, it also includes the value of in-work benefits that could push some households just over the threshold.

This is called adjusted net income, which is what the system looks at to calculate someone’s eligibility for the benefit. Blick Rothenberg partner Robert Salter told This Is Money that a number of other sources of income are included in this calculation for child benefit purposes.

Overtime, bonuses and any taxable benefits provided by a person’s employer, including private health insurance, a company car and fuel benefits, are used in this calculation. In addition, pension income also plays a role, whether it is a private or state pension.

It’s also important to note that child benefit takes into account all income streams for a person, which would include any income from self-employment outside of their primary job or such as rental and investment income.

Things that count as deductions from adjusted gross income, according to Robert, are superannuation contributions, Gift Aid subscriptions, cycle-to-work scheme costs and tax-deductible business expenses such as professional memberships.

Child Benefit technically has two thresholds, the lower of which was raised from £50,000 to £60,000 in April. The upper threshold was previously set at £60,000 but has been extended to £80,000.

Parents or guardians whose total income is between £60,000 and £80,000 will still get Child Benefit but may have to pay some of it because of the High Income Child Benefit Levy.

Once a parent’s income exceeds £80,000 a year, Child Benefit will be withdrawn entirely, with the phase-out based on the individual income of a single carer rather than household income.

The weekly Child Benefit payment gives parents £25.60 for their first born or only child and £16.95 for each additional child. The allowance is paid monthly until the child turns 16, or 20 if enrolled in approved full-time studies or unpaid training according to Money Saving Expert.