[2] Over the 1930s, growing evidence showed that large numbers of children were born into poverty, with 47% suffering five years or more of malnutrition.
These were not immediately adopted, and following the publication of the Beveridge Report, which called for subsistence levels of payments, uprated with the cost of living, the Family Allowances Act 1945 was passed.
This was designed to support large families, and was set well below the nine shilling a week subsistence level (further devalued by inflation) recommended by Beveridge.
[8][9] Rates were raised largely in line with inflation to 1979, but several above-inflation increases followed under the Conservative government of Margaret Thatcher.
The Child Benefit Bill was introduced in 1975 by Barbara Castle, based on the child credit element of the rejected previous Heath government's Tax Credit proposal that would have replaced PAYE, integrating tax and benefits.
Like the family allowance, which it replaced, the new benefit was not means tested; an attempt by the Callaghan government to introduce this was thwarted in 1976 when cabinet papers were leaked to the Child Poverty Action Group.
Unlike the family allowance, provision was made for the rate to be uprated, at the Secretary of State's discretion, each year.
Child benefit rates were uprated roughly in line with inflation until 1988, but subsequently was frozen until 1990, in order to curb welfare spending.
This rise in child benefit directly contributed to the lifting of over 1.8 million children out of poverty.
[16] Couples can choose to "opt out" of child benefit if they estimate that this would be easier than paying back the overpaid amount each year.