The law provides for child benefit to be paid to only one person. Where more than one person is responsible for a child and each satisfies the entitlement conditions, they should decide between themselves which of them shall be entitled and make an election to that effect. If they are unable to decide, it falls to a decision-maker, acting on behalf of the Commissioners for HMRC, to make a discretionary decision. There are no hard and fast rules governing these decisions, as every case is different and many factors that have a bearing on the care arrangements need to be considered. In general, the claimant who bears the greater responsibility will be awarded the child benefit. The overriding position is to ensure that the child is the ultimate beneficiary.

The following table sets out the number of cases in which two parents have made a rival claim for child benefit for the same child in each of the last three years.

The law provides for child benefit to be paid to only one person. Where more than one person is responsible for a child and each satisfies the entitlement conditions, they should decide between themselves which of them shall be entitled and make an election to that effect. If they are unable to decide, it falls to a decision-maker, acting on behalf of the Commissioners for HMRC, to make a discretionary decision. There are no hard and fast rules governing these decisions, as every case is different and many factors that have a bearing on the care arrangements need to be considered. In general, the claimant who bears the greater responsibility will be awarded the child benefit. The overriding position is to ensure that the child is the ultimate beneficiary.

The following table sets out the number of cases in which two parents have made a rival claim for child benefit for the same child in each of the last three years.

The Government considered a number of different options relating to child benefit including how any change should be delivered. Looking at household income would mean finding out the incomes of everyone in each of the 8 million households getting child benefit. This would effectively introduce a new means test. Our approach means that HMRC only had to contact around 15% of those families.

Forecasts of the number of tax credits claimants are not available at parliamentary constituency level and we have not estimated the number of people who would be affected by working tax credit policy changes. As at December 2012, there were 6.3 thousand in-work families in Poplar and Limehouse constituency. This information can be found in HMRC's published National Statistics here:

http://www.hmrc.gov.uk/statistics/prov-geog-stats/cwtc-geog-dec12.xls

There are no changes to the pre-announced child benefit policy taking place at April 2013. As at August 2012, there were 15.7 thousand families in receipt of child benefit in Poplar and Limehouse constituency. More information can be found in HMRC's published National Statistics, here:

http://www.hmrc.gov.uk/statistics/child-geog-stats/chb-geog-aug12.xls

While child benefit and child tax credit are designed to help families living in the UK only, the EC social security co-ordinating regulations, EC Regulation 883/2004 and 987/2009, treat both child benefit and the child tax credit as “family benefits”. Under these rules, such benefits are therefore payable to nationals of the European Economic Area (EEA) in respect of members of their family resident in another member state.

The EC regulations are directly applicable to all member states in equal measure. Nationals of other EEA member states who are working in the UK and paying compulsory UK national insurance contributions are entitled to claim UK family benefits in respect of children living in another member state. Similarly, UK nationals working and paying social security contributions in another member state are entitled to that member state’s family benefits in respect of their children resident in the UK.

The Government are not aware of any instance of other EEA member states not applying these rules. All claims for child benefit and child tax credit made under the EU social security co-ordinating regulations are subject to a wide range of checks on entitlement and an annual review. These checks include confirmation that a claimant is paying national insurance contributions. If national insurance contributions are not being paid, the claim will fall for disallowance.

While child benefit and child tax credit are designed to help families living in the UK only, the EC social security co-ordinating regulations, EC Regulation 883/2004 and 987/2009, treat both child benefit and the child tax credit as “family benefits”. Under these rules, such benefits are therefore payable to nationals of the European Economic Area (EEA) in respect of members of their family resident in another member state.

The EC regulations are directly applicable to all member states in equal measure. Nationals of other EEA member states who are working in the UK and paying compulsory UK national insurance contributions are entitled to claim UK family benefits in respect of children living in another member state. Similarly, UK nationals working and paying social security contributions in another member state are entitled to that member state’s family benefits in respect of their children resident in the UK.

The Government are not aware of any instance of other EEA member states not applying these rules. All claims for child benefit and child tax credit made under the EU social security co-ordinating regulations are subject to a wide range of checks on entitlement and an annual review. These checks include confirmation that a claimant is paying national insurance contributions. If national insurance contributions are not being paid, the claim will fall for disallowance.

As far as contributions to the state pension are concerned, the change will have no effect whatsoever on any of those who opt out. The system will not be affected by the change and the hon. Lady can be assured that that is not an issue. I also point out that all households affected by the high income charge on child benefit are in the top 15% to 20% in terms of earnings. It is right for the Government to take some difficult decisions to reduce the deficit.

Owing to the changes to child benefit for families with a higher-rate earner, as from 7 March, 370,000 parents have opted not to receive child benefit. Will the Chancellor say how many of those 370,000 parents are stay-at-home mums who will lose their national insurance credit to their state pension, which is linked to the receipt of child benefit? Were they advised before they made that decision?

The number of child benefit recipients who have asked to have their child benefit payments stopped is over 370,000 as at 7 March. The charge will raise over £1.7 billion each year to tackle the deficit.

Child benefit continues to be paid to all families who claim it and who are entitled to it. A tax charge is used to withdraw child benefit so that people on lower incomes do not continue to subsidise those who are better off. The tax charge only applies to people on an income over £50,000, who claim child benefit or whose partner claims child benefit. This charge increases gradually for taxpayers with an income between £50,000 and £60,000.

The Government considered a number of different options relating to child benefit including how any change should be delivered. Looking at household income would mean finding out the incomes of everyone in each of the 8 million households getting child benefit. This would effectively introduce a new means test. Our approach means that we only had to contact around 15% of those families.

HM Revenue and Customs (HMRC) determines a claimant’s self-employment status in the same way that it would for a UK national, establishing whether that person had a contract for services with someone who was employing them and that activity was in some way remunerative; or if that person was undertaking some trade or profession and that trade or profession, while not immediately remunerative, was undertaken with the prospect that it would at some time be profitable.

There is no requirement for an individual to have been paid national insurance contributions previously before they can be considered to be self-employed for right to reside purposes.

Before an individual can receive child benefit, they must first have a right to reside.

The UK and other EEA member states do operate a residence requirement for the award of child benefit under domestic legislation. However, as things stand, the EU Regulation 883/2004 places an additional requirement on EEA Member Governments to pay family benefits to nationals of EEA countries who are working and paying compulsory National Insurance contributions in their country in respect of members of the family who are residing in another EEA member state.

Child benefit and child tax credit is intended to help families in the UK. Generally, therefore, it is not payable in respect of children resident outside the UK. However, both child benefit and the child tax credit are classed as “family benefits” under the EC social security co-ordinating Regulations (EC Regulation 883/2004 and 987/2009) which the UK has administered since it joined the European Economic Community in 1973 and is payable to EEA nationals in respect of members of their family resident in another member state.

The EC Regulations are directly applicable to all member states in equal measure. Nationals of other EEA member states who are working in the UK and paying compulsory UK national insurance contributions are entitled to claim UK family benefits in respect of children living in another member state. Similarly, UK nationals working and paying social security contributions in another member state are entitled to that member state’s family benefits in respect of their children resident in the UK.

Information about a customer’s ordinarily resident status and their right to reside in the United Kingdom remains on their clerical records until their entitlement to child benefit is determined and their clerical records are destroyed.

The main purpose of child benefit and the child tax credit is to support families in the UK. Consequently, the rules for these benefits generally do not provide for them to be paid in respect of children who live abroad.

Nevertheless, both child benefit and the child tax credit are family benefits under EC Regulation 883/2004. This regulation protects the social security rights of nationals of all member states of the European economic area (EEA), including the UK, and Switzerland when they exercise their rights of free movement under EU law.

The EC Regulations have detailed rules to decide which national social security scheme a worker should pay into and which member state has responsibility for the payment of benefits, including family benefits. The EC Regulations generally provide that workers should pay contributions into the social security scheme of the member state where they work and, in turn, that state is

responsible for the payment of family benefits. Consequently, nationals of other EEA member states who are working in the UK and paying compulsory UK national insurance contributions are entitled to claim UK family benefits in respect of children living in another member state.

I refer the right hon. Member to the reply given to him on 28 January 2013, Official report, columns 619-20W, for details about the number of claims for family benefits paid under the EC Regulations for children resident in another member state and which member states such children reside.