Overview

This bill, the Front-loaded Child Benefit Act, proposes to amend the existing Child Benefit system. It allows eligible parents to choose to receive a higher rate of child benefit during their child's early years, with a correspondingly lower rate in later years, while maintaining the overall total benefit amount.

Description

The bill modifies the Child Benefit (Rates) Regulations 2006. It introduces a new option for parents to receive a varied rate of child benefit. Instead of a fixed weekly amount, parents can opt for a higher payment during their child's early life and a reduced payment as the child grows older. The total amount received over the child's upbringing would remain unchanged from the standard rate.

The Secretary of State will set the specific varied rates through regulations that must be approved by both Houses of Parliament. The bill clarifies that the new option doesn't permit a lower rate at any point than the current rate for the corresponding age, safeguarding benefit levels.

Government Spending

The bill is not expected to change the total amount spent on child benefit. The redistribution of payments across a child's life will mean no additional cost to the government. The overall budget remains the same.

Groups Affected

The bill primarily affects:

• Parents receiving Child Benefit: They will have the choice of receiving varied payments.
• Government Agencies: Responsible for administering the child benefit system, requiring adjustments to payment calculations and processes.

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