Baby Benefits and Money-Saving Tips for Parents

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Total views: 158 | Word Count: 953 | Date: Sun, 30 May 2010 | 122 comments

Bringing up baby is a costly business, so be sure to claim all you're entitled to. We take a look at the financial help that's available to new parents.

As I've recently become a dad for the first time (twin girls: Bettie and Elise), I thought I'd dedicate this week's blog to the various baby benefits that are available to new parents. Believe me, if you're about to start a family, you'll want to know what financial help you're entitled to because, shock news...

...kids are expensive!

Five weeks and three million nappy changes into our big adventure, my wife and I are only just rousing from the life-changing shock of it all. And as the initial euphoria fades, the realisation that we're now financially responsible for our little lovelies has hit with all the sobering subtlety of a bucket of ice water over a morning-after drunk (I speak from experience).

Fortunately, parents can claim support to help with those extra expenses. Here are some of the baby benefits and tax breaks that are available.

Tax Credits

There are two types of government tax credits - Child Tax Credit and Working Tax Credit. 90 per cent of families with children qualify for tax credits, and the amount you'll receive depends on: income; number of children; whether you work and for how many hours; childcare costs; if your child has a disability; if you're 50 or over and are coming off benefits.

You may be able to claim tax credits for your new baby/babies, or claim more if you're already claiming, and the money is back-dateable up to three months. If you already receive Child Tax Credit, you'll also get an extra payment for a new baby under the age of one (unless you already claim for another child under one, as there's only one such payment per family - including twins).

First-time claimants will need to fill in a form (call the Tax Credit Helpline on 0845 300 3900 or textphone 0845 300 3909). The helpline can tell you how much you will get, or you can get an idea by completing the tax credits questionnaire. At present, you may be eligible for: a family element worth up to £545 a year; a baby addition in the first year of £545; a child element, worth up to £2,300 a year for every junior member of the family; extra money for children with disabilities.

It's worth noting that even if you're not on a low income, you should still check your Child Tax Credits eligibility. A family earning as much as £66,350 a year will still be entitled to some money.

And if you already receive Working Tax Credits, you can still claim Child Tax Credits. What is Working Tax Credit? Basically, it's an extra weekly payment available to low earners. If you think you qualify, make sure you chase it up as it also allows you to claim towards childcare costs (up to £140 a week for one child or £240 for two or more children).

Child Benefit

Child Benefit is usually available for children under 16, between 16 and 19 (or 20 in some cases) if they're in education/training, or 16-17 if they've recently left education or training and register for more work or training.

Payments are tax free and current rates are £20 a week for the eldest or only child and £13.20 a week for each additional child. To apply, you'll need to fill in a claim form. Follow the link for more information on Child Benefit.

Child Trust Fund
Once you've made a claim for Child Benefit, you should automatically receive a £250 (per child) money voucher to open up a Child Trust Fund. The CTF is a tax-free savings and investment account for your child, into which up to £1,200 a year can be paid. These savings can't be touched until the child reaches 18. Furthermore, when your child reaches seven, he/she will receive an extra birthday present of another £250 voucher for their fund.

For low-income households, both vouchers rise in value to £500 per child, and further CTF vouchers are available for children with disabilities (£100 a year) or severely disabled children (£200 a year).
If you don't receive a voucher within a month of claiming Child Benefit, call the CTF helpline on 0845 302 1470 or textphone 0845 366 7870.

Free Baby Products

When my wife left the maternity ward last month, a midwife handed us a couple of large bags filled with baby essentials. Bounty Packs contain samples of nappies, baby wipes, laundry tablets and toiletries for the baby. We were also given a voucher for baby essentials from the registrar when we registered our babies. What's more, we'll apparently receive another bounty pack when our girls turn six months old. Sure, these goodies are given out in the hopes that we'll remain loyal to the various brands - but a freebie is a freebie, and every little helps.

With that in mind, I shall point you towards this savings website. Baby Freebies hosts loads of links to free stuff, special offers and discount vouchers for a variety of baby products. Definitely worth a look if money is tight.

About the Author

Anyway, these are my tips for helping with the costs of bringing up a baby. To save even more money visit Confused.com for fantastic mortgages and savings deals.

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