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child-benefit-notes.md

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Child benefit notes

  • Tax allowances from 1909: £10 tax allowance for those earning less than £500/annum. But NB most people did not earn enough to pay income tax.

Family Allowance and Child Benefit

  • Family Allowance introduced 1946. Flat rate 5s/wk, only from 2nd child.

  • Increased to 8s/wk in Oct 1952.

  • 1956: increased to 10s/wk for 3rd and subsequent child; and max age increased to 18.

  • 1968: increased from 8 to 15 to 18 shillings; and from 10s to 17s and £1.

  • 1975 Increased to £1.50 for each child after the first.

  • 1977-79 child benefit per child replaced family allowance; paid directly to mothers. One parent benefit introduced.

  • By 1978: £3/week + £2/week for lone-parent families

  • 1979: £4/week + £2.50 for lone parents. Child Tax Allowance abolished.

  • Uprated with inflation through 80s and 90s with some gaps.

  • 1991 higher rate for first child only.

  • 1998 one parent benefit abolished with some grandfathering.

  • c. 1999 benefit for first child increased by 25% in real terms.

  • Rates increased with inflation till 2010. Since then, frozen.

  • From 2013 higher rate taxpayers no longer got child benefit.

  • As of 2020: £21/week first child and £14/week subsequent children.

Family Income Supplement

  • 1970 Family Income Supplement introduced - means-tested. Low take-up.
  • Had to be in employment. Takeup low but increased sharply in 80s and 90s.
  • In 1984: £23/week for one child + £2 for subsequent children.
    Threshold was max income of £90/week. Also a capital threshold (as you remember very well).
  • 1986 became "Family Credit". It was tapered; e.g. in 1997 by 70% above £77.15/week.

Income support

  • Introduced 1988.
  • Could get if you worked < 16 hours/week, and were a lone parent with a child under 5.
  • Basically flat since introduction.

Most of our guys were born in 1940-70. Their children, 95% between 1961-1998.

Sources https://revenuebenefits.org.uk/child-benefit/policy/where_it_all_started/ https://en.wikipedia.org/wiki/Child_benefits_in_the_United_Kingdom Rates of benefit: https://researchbriefings.files.parliament.uk/documents/SN06762/SN06762.pdf