Family entitlements

From tax credits to other benefits, there is financial help out there. These are some of the entitlements you may qualify for.

Child benefit

This is a tax-free payment made if your child is under 16; if your child is over 16 and in relevant education or training; or your child is 16 or 17, has left relevant education or training and is registered for work, education or training with an approved organisation. You can receive Child Benefit if your child doesn’t live with you, but only if you pay towards your child’s upkeep and only if the person bringing up your child isn’t also claiming Child Benefit for them. The current amounts paid are £20 per week for your eldest child and £13.20 per week for each of your other children. For more information about Child Benefit and to see if you are eligible to receive it, take a look at www.hmrc.gov.uk/childbenefit.

Child Tax Credit

You might also be entitled to Child Tax Credit, particularly if you are a lone parent, or if your household income is less than £66,350 for children under one year, or £58,175 for older children. Child Tax Credit is usually paid to people who are responsible for at least one child or a ‘qualifying young person’.

This is someone who is aged between 16 and 20, in full-time education or on an approved training course before their 19th birthday, for example. There are other conditions that need to be met in order for someone to be classed as a ‘qualifying young person’. You can read more about these, and also about Child Tax Credit here.

Working Tax Credit

You may be eligible for Working Tax Credit if you are employed or self-employed (either on your own or in a partnership) and work 16 hours a week or more, are paid for that work and are expected to work for at least four weeks. To qualify, you must be aged 16 or over and responsible for at least one child, or aged 16 or over and disabled, or aged 25 or over and usually work at least 30 hours a week. If you are in a couple and you both work 16 hours or more a week, only one of you can receive Working Tax Credit. As part of this, you may qualify for help towards the cost of childcare (which could mean you get up to 80p for every £1 you pay out in childcare costs). Find out more about Working Tax Credit here.

Statutory Maternity Pay (SMP)

Maternity pay is paid at 90 per cent of your average earnings for the first six weeks and then at a flat rate of £117.18 per week or 90 per cent of your average earnings, whichever is less, for 33 weeks. Your employer may offer more maternity pay than this, but cannot pay less.

To qualify, you must have worked for your current employer for at least 26 weeks before the end of the 15th week before your baby is due, and have been earning, on average, at least £90 a week. To claim, give your boss your MATB1 (the form your midwife will give you confirming your baby’s estimated due date) at least 28 days before you want the pay to start.

And don’t forget that as a new mum you’re entitled to free NHS dental treatment and free prescriptions until your child is one year old.

Statutory Paternity Pay (SPP)

New dads can take two weeks’ paternity leave if they have been employed for at least 26 weeks by the 15th week before your baby is due. Your partner can claim SPP for these two weeks, if he earns £90 a week or more. He’ll get £117.18 per week as SPP, or 90 per cent of his normal weekly pay, whichever is less.

Maternity Allowance (MA)

If you are pregnant and are not entitled to SMP, or are self-employed, you should qualify for Maternity Allowance (MA). However, there are certain conditions you must meet to be eligible for this: you need to have been employed and/or self-employed for at least 26 weeks of your 66 week test period (the test period is clearly explained in the application form for MA). If you are self-employed, you must be registered as such with HM Revenue & Customs. You can find out more about MA here. If you do qualify, MA can be paid for up to 39 weeks and you don’t pay income tax or National Insurance contributions on it.

Free nursery care

Don’t forget that your child is entitled to 12.5 hours of free nursery care a week once he turns three. Your nursery should deduct this automatically from your monthly bill but if you need more information, visit www.direct.gov.uk/en/parents/childcare. You can also use a child minder if yours is part of a registered network.

Think about flexible working

Did you know that if you have a child under six you have a legal right to request flexible working from your employer? Your boss must consider your request properly and explain her reasons if she turns you down. You can appeal against her decision – visit www.direct.gov.uk for more information.

If you have a job where you can work flexibly, you may well find you can save money by working a couple of days from home; compressed hours; flexitime, during school hours; or during term time only. The working families website, http://www.workingfamilies.org.uk/, has useful information on how to request a flexible working arrangement and how to make it work in practice – they also have very clear advice on tax and benefits.

Childcare vouchers

Your employer may offer tax-free childcare vouchers as part of a salary sacrifice scheme. If so, you need to decide between taking advantage or the vouchers or the childcare element of tax credits. The HM Revenue and Customs website gives advice on this. Visit www.hmrc.gov.uk/childcare/interaction-tc-cv.htm.