Hard-pressed parents might be inadvertently missing out on a financial leg-up, with extra perks and savings that could ease the squeeze as temperatures drop.
Credit management company Lowell has revealed in a recent study that over half (54%) of UK parents have relied on credit for their children’s essential school items or activities, causing 69% to fret over the repayments.
Yet, in an unfortunate twist, a significant number may be unaware of the support they qualify for now due to this year’s upped income threshold for Child Benefit.
Amidst the ongoing cost of living pinch, many families previously ineligible for Child Benefit might now be able to receive it.
Lowell is prompting parents to double-check their eligibility for this and other subsidies like Universal Credit, reminding them that past knock-backs don’t mean doors are permanently closed.
Come April, the earnings limit for Child Benefit rose to £60,000 the point at which the benefit gradually decreases with the upper boundary also getting a boost to £80,000 before complete withdrawal, a full £20,000 above its predecessor.
Child Benefit adds up to £25.60 weekly for the first or only child and £16.95 per sibling thereafter. That means it’s worth at least £1,331 a year. In light of these figures, the specialists underscore: “It’s worth checking your eligibility, as these payments can help cover essential school costs.”
Moreover, parents can leverage Child Benefit to amass National Insurance credits, which serve to enhance their state pension eligibility. To secure state pension, individuals need a bare minimum of 10 years on record during which they either earned National Insurance credits or contributed towards National Insurance payments.
The Gov.uk site points out that people who may not qualify for Child Benefit, or those who opt not to receive it: “You should still make a claim to get the other advantages.”
What’s more, households possessing savings or investments totalling no more than £16,000 could potentially qualify for Universal Credit as well.
This primary benefit paves the way to a realm of financial assistance from the DWP, along with a plethora of additional perks. Being eligible for Universal Credit often translates into qualifying for a host of other benefits, some savvy freebies and a variety of discounts, ranging from complimentary school meals to subsidies on childcare expenditures.
