The 1980s were wild for Child Benefit. Margaret Thatcher’s government did keep increasing the payments, despite some big debates. In 1987, the rate for the first child hit £7.25. That’s about £20 in today’s money—enough for a family fish-and-chips dinner with extra scraps.
Labour urged to end two-child benefits cap as research reveals policy
But here’s the twist: in 1988, the government stopped uprating the benefit in line with inflation for the first child only. Bizarre, right? It meant the value slowly shrank over time. Imagine getting the same allowance for a decade while the price of everything—from Milky Ways to milk—kept climbing. That’s the 1990s headache waiting to happen.
The 1990s: A Tale of Two Children
By 1991, the payment for the oldest child was £8.25 a week. For younger siblings? You got £10.55. Wait—that’s backwards! Yes, the second and later children were worth more than the first. It was like saying, “Hey, your first kid is cheap, but the extras? They’re expensive.”
This quirky rule lasted until 1998. By then, the weekly rate for the first child was £11.05 and for others it was £13.20. That’s like upgrading from a second-hand bike to a new one—still small, but oddly satisfying.
Understanding Child Benefit in the UK