Publication of the Child Benefit Bill

The Government will for the first time pay Child Benefit to the families of 16-19 year olds in unwaged work-based learning and 19 year olds completing a course of education or training, thanks to measures set out in the Child Benefit Bill published today.

Supporting young people to achieve , published alongside Budget 2004, set out a package of short-term measures and a long-term vision to improve financial support for 16-19s, to ensure that all young people can stay on in education or training after 16.

The Bill, which is the first Child Benefit Bill since 1975, is an important step towards implementing these proposals.

The measures have been developed in consultation with voluntary sector youth organisations, learning providers and businesses.

Commenting on the Bill, the Paymaster General Dawn Primarolo said: m“We want to see all young people reach the age of 19 ready for higher education or skilled employment. This is essential to increase individual opportunity and build a flexible, productive and high skilled economy.

“The successful national roll out of the Education Maintenance Allowance has demonstrated the importance of financial support and incentives in delivering higher post-16 staying on rates. Building on this success, the Child Benefit Bill will support young people’s choices between education and work-based learning, and ensure that young people are supported until they finish their course.”

Notes for Editors

1. Child Benefit is currently available beyond the age of 16 up to the 19th birthday for young people who stay in full-time non-advanced education, but not those who enter work-based learning. The Bill will enable the Government to lay regulations defining the circumstances in which young people aged 16 and over qualify for Child Benefit, including those in unwaged training and 19 year olds completing a course of learning. The Bill will have no impact on the universal eligibility for Child Benefit for children under 16.

2. Draft regulations will be published during the course of the Bill’s passage through Parliament, setting out the detail of the new criteria for payment of Child Benefit to 16-19 year olds.

3. Child Benefit is currently paid at a rate of £16.50 for the first child and £11.05 for subsequent children (£17.00/£11.40 from April 2005).

4. Supporting young people to achieve is available at www.hm-treasury.gov.uk/financialsupport.

5. The Bill and accompanying Explanatory Notes prepared by the Inland Revenue are published by the Stationery Office. An electronic version is available from the Parliamentary website and paper versions are available from Stationery Office bookshops.

6. The Regulatory Impact Assessment is available from the HM Treasury website.

7. Media enquiries should be addressed to Rachel Gibbons at the Treasury press office on 020 7270 5185.

8. Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk.

9. This press release and other Treasury publications and information are available on the Treasury website at http://www.hm-treasury.gov.uk/. If you would like Treasury press releases to be sent to you automatically by e-mail you can subscribe to this service from the press release site on the website.