The Child Benefit and Guardian’s Allowance Up-rating Order 2004

Explanatory Note

(This note is not part of the Order)

This Order is made by the Treasury as the consequence of a review, conducted by them under section 150 of the Social Security Administration Act 1992 (c. 5), of the general level of prices. It details the amounts mentioned in section 150(1) which it falls to the Treasury to determine in consequence of the transfer of functions in respect of child benefit and guardian’s allowance under section 49(3) of the Tax Credits Act 2002 (c. 21).

Article 1 provides for the citation and commencement of the Order.

Article 2 increases the weekly rate of guardian’s allowance prescribed in paragraph 5 of Part III of Schedule 4 to the Social Security Contributions and Benefits Act 1992 (c. 4) from £11.55 to £11.85.

Article 3 increases the weekly rates of child benefit prescribed in sub-paragraphs (a)(i) and (b) of regulation 2(1) of the Child Benefit and Social Security (Fixing and Adjustment of Rates) Regulations 1976 (S.1. 1976/1267). The effect is to increase the amount for the eldest or only child from £16.05 to £16.50 and for any other child from £10.75 to £11.05.

Article 3 also confirms that the rate prescribed in 2(1)(a)(ii) (payable in respect of the eldest or only child living with a lone parent) remains £17.55. This is only payable in transitional cases where the rate was applicable in the case of a child who was living with a lone parent in 1998 and has continued to do so.

This Order does not impose any new costs on business.