One of the hardest parts of being a single parent is making the finances work. It can feel impossible to run a household on one income, and it often feels like to make matters worse, the system is unfairly stacked against one-parent families. The Spring Budget brings significant changes impacting single-parent families in the UK, particularly regarding child benefit rules and income thresholds.

What Changes Have Been Made To Child Benefit Rules?

The government is addressing the unfairness in child benefit distribution by moving towards a system based on household income rather than individual incomes by April 2026. Additionally, current changes include increasing the threshold at which the charge kicks in to £60,000 from April 2024. 

What Are The Current Income Thresholds For Claiming Child Benefits in the UK?

Under the current system, a single-income household earning £50,000 would begin repaying child benefit, while those earning £60,000 would lose eligibility entirely. Following the budget, as of April 2024, this will increase.

How Will These Change From April 2024?

From April 2024, the income threshold for the High-Income Child Benefit Charge (HICBC) will increase to £60,000, and the rate at which the charge is applied will be halved. This means child benefit will not be withdrawn until individuals earn £80,000 or higher.

When Will The Consultation Around Household Child Benefit Eligibility Take Place?

The government plans to administer the HICBC on a household basis by April 2026 and will consult on this change in due course. This shift aims to rectify disparities in benefit distribution among different family structures. 

So, Is This Finally Good News For Single Parent Families?

Potentially, yes, this will address one of the biggest financial penalties on single parent families, and the immediate change increases income capacity for many single parents in the next tax year. 

What Help Is Available To Single Parent Families?

You can read about all the financial benefits that single parents in the UK may be eligible for in our guide to single parent benefits here. ​​ 

You’ll find help and support from other members of the Frolo community on our Frolo Finances Group Chat. 

There’s also a chapter on managing your money in How To Be A Happy Single Parent, with advice on building a budget and making changes to your spending. 

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