Overview

This bill proposes to amend the Child Benefit (Rates) Regulations 2006. It allows eligible parents to choose a system where child benefit payments are higher in a child's early years and lower as the child gets older, maintaining the total amount received over the child's childhood.

Description

The core change introduced by the "Front-loaded Child Benefit Act 2021" modifies the Child Benefit (Rates) Regulations 2006. Specifically, it adds a new provision (regulation 1A) that gives parents the option to receive child benefit payments on a sliding scale. This means the weekly amount could decrease as the child ages, but the overall total received throughout the child's childhood would remain the same as under the current system. This option is subject to the condition that no rate at any point is lower than the rate previously in force (as per section 145(4) of the Social Security Contributions and Benefits Act 1992).

Government Spending

This bill is not expected to increase or decrease overall government spending on child benefit. The total amount paid per child remains unchanged; the payments are simply redistributed across the child's upbringing.

Groups Affected

• Eligible Parents: Parents receiving child benefit will have the choice of opting into the new sliding scale payment system. Those who choose this option will see higher payments in the early years and lower payments in later years.
• Children: While the total benefit remains the same, the timing of payments will be different for children whose parents choose the new system.
• Government Agencies: The relevant government agencies will need to implement the administrative changes necessary to support the new payment system.

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