What do you spend child benefit money on?

[fateisdestined2025]

Do you save it or spend it?

I have a separate account for the CB and its used to pay for monthly clubs, new shoes, swimming lessons, if they want to go anywhere or do something specific. It's their money I don't use it.

@Owl718 This is a recent change to CB. The threshold is £60,000, that's very much an above average wage outside of London.

The threshold
An individual income is over the threshold if it’s:

• over £60,000 for the tax year 2024 to 2025
• over £50,000 for tax years up to and including the tax year 2023 to 2024

Who pays the tax charge
If your adjusted net income is over the threshold and so is your partner’s, then whoever has the higher income is responsible for paying the tax charge.
‘Partner’ means someone you’re not permanently separated from who you’re married to, in a civil partnership with or living with as if you were.
If your income is over the threshold
You can choose to either:
get Child Benefit payments and pay any tax charge at the end of each tax year

• opt out of getting payments and not pay the tax charge

Gov.uk

Child benefit is a monthly government payment to anyone who is responsible for a child to help pay for anything they need and boost your household budget. It can only be paid to one person, and you don't necessarily need to be the child's parent to receive it, but you must be responsible for a child.

Depending on your income, you may not benefit financially from receiving child benefit payments. But it's always worth signing up – even if you choose to opt out of receiving the payments – as the benefit is linked with National Insurance contributions, and could affect your eligibility to claim the state pension.

Eligibility for child benefit is not means-tested, although households in which someone earns £60,000 or more will have to pay some or all of it back. The payments you receive are based on how many children you're responsible for.
There's a higher rate for the eldest (or only) child, and then additional lower rates for any younger children.
In the 2025-26 tax year, you'll receive* *£26.05 a week for your eldest or only child and £17.25 for each additional child.
There is no upper limit to the number of children you can claim for.

Which.

It can’t be a recent change as I’ve never received any. It must be at least 10 years or more.

It’s not a high threshold. A single parent earning 60k is no better off than a 2 parent family each earning minimum wage.

It was 2013 @Owl718 which to an oldie is recent.
I think you're looking at this from a privileged position.
And as I've discussed, it isn't calculated the same as other benefits for low income households.

That’s a very disingenuous use of words. “It’s not means tested but you have to pay it back if you earn too much”!!

Being awarded something you can’t keep can hardly be considered as being beneficial.

Also no point claiming it and then paying it back if you’re working as you’ll accrue NI credits anyway.

Is a 2 parent household both on minimum wage privileged?

I send half straight to my son and the rest goes into the family general spend pot.

Higher earners have the option to not claim it @Owl718.

Average minimum wage:

• £11.44 per hour x 37.5 hours per week = £430.50 per week
• £430.50 per week x 52 weeks per year = £22,308 per year.

...The Child Benefit threshold is based on the higher earner's income, not the combined household income, and it applies to either parent's income if they have a partner. If you and your partner are both high earners (each over the £60,000 threshold), the tax charge is based on the person with the higher individual income, not the total household income.

Your numbers are wrong. The current rate is 12.21 which equates to 24,761 for a FT role. This results in take home pay of 21,349.

That means both parents working for minimum wage equates to a household income of 42,698.

A single parent earning 60k takes home 45k.

I’d love to know how you concluded that equates to privilege.

My point stands @Owl718. You're now fogging up the thread.

Bills. Every so often I say ‘it’s for the kids’ and spend it on necessary clothes or school bills but it’s mostly used for day to day bills for the family. A work colleague used to save it for her dd for when she turns 18 and I thought it was great but we’ve never gotten to that point (no savings really now but it’s fine)

Your point is totally incorrect and woefully misleading.

It is OK to accept you were wrong.

The 60,000 + refers to a parent's adjusted net income, not before taxes and expenses, so your calculations are incorrect.

And yes, I would consider someone taking home 60k privileged, particularly if their partner also earns a decent wage.

Are you a 'too proud to claim' type? @Owl718

I think this thread shows why the benefit should be reformed.

It should only be aimed at parents who genuinely need support with their kids' daily needs. Not given so that parents who are not struggling financially and just stick the money into saving accounts. That is a waste of taxpayer money...

That is incorrect. It is the income before tax that is used to determine eligibility.

You clearly have no idea what you’re talking about.

Show me where it says it is based on income before tax @Owl718

What pure bullshit!

CB is £104 a month. If you desperately need it , it doesn’t exactly stretch much does it? If you’re not desperate, but you’re using it for extras like clubs or nice things? Is that allowed? What about saving it , but the kids don’t get the nice things? Or whatever other combination.

I agree. @Greenwitchart

If you or your partner earn over the threshold
If either you or your partner’s ‘adjusted net income’ is over the threshold, you may have to pay the High Income Child Benefit Charge.
Your adjusted net income is your total taxable income before any personal allowances and less things like Gift Aid.

That’s from the government website.

If you really believe that CB eligibility is calculated on take home pay then you really are awfully misinformed and don’t have any grasp of even the basics.

The calculations I used for a 60k single earner who pays 14k in tax and NI are correct.

(Gov.uk)
Work out your ‘net income’
Add up your taxable income.
Include things like:

• money you earn from employment (including any benefits you get from your job)
• profits you make if you’re self-employed including from services you sell through websites or apps
• some state benefits
• most pensions (including the State Pension, company and personal pensions and retirement annuities)
• interest on savings and pensioners bonds
• dividends from company shares
• some rental income
• income from a trust

foreign income, (including income where a claim under the foreign income and gains regime has been made) Take off any tax reliefs that apply like: payments made gross to pension schemes — those that have been made without tax relief

• trading losses, for example trade loss relief or property loss relief

This is your ‘net income’.

This is not the same as final 'take home pay' @Owl718.

You’re arguing against your original point now!

Child benefit eligibility is based on your income before tax. If you earn over 60k your eligibility is impacted despite the fact you pay 14k of that in income tax and NI.

Those means a lot of households with higher take home income than a single person on 60k+ receive full CB.

My original point was it isn't means tested, which is correct. @Owl718

I may have to have another look at the books...

Food