Child benefit is a universal benefit (B) paid for every child, irrespective of the family income. An increase in the rate of child benefit will increase the total amount of benefit received by a household, this will increase their disposable income, and so reduce a determinant of child poverty.

Disclaimer Statement

Note the following is a very broad statement that has been used for educational purposes. The actual relationship may not hold due to the complexities of the issues. Therefore, it should not be taken literally.

The problems with this policy stem from concerns on how well focused the policy is, and the wider implications on government policy.

• An increase in child benefit will act to increase government expenditure and consequently increase pressure on the government budget. Remember, you have a fixed budget !
• Child benefit is a universal benefit. Therefore, all households are entitled to receive the benefit. This means that the effectiveness of the policy may not be as high as you wish as it is not specifically targeted to the households in greatest need.

The starting level of child benefit is set at £10.35. The input parameters can range between £2.00 to £30.00

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