HM Revenue and Customs (HMRC) is encouraging parents earning below £80,000 to verify their eligibility for Child Benefit, as millions of families may be missing out on financial support. The tax authority reports that over 1.4 million parents and carers have already submitted online claims, yet many more could still be forfeiting payments worth hundreds or potentially thousands of pounds annually.
Current Payment Rates
At present rates, households can receive £26.05 weekly for their eldest child and £17.25 for each subsequent child, distributed every four weeks. This equates to over £1,350 a year for one child, rising significantly for larger families. Payments are typically made every four weeks, although some parents—including single parents or those on certain benefits—can opt to be paid weekly.
Who Is Eligible
Child Benefit is accessible to anyone responsible for raising a child under 16—or under 20 if they continue in approved education or training. There is no limit on the number of children you can claim for, though only one person can receive the benefit per child.
Common Misconceptions
Confusion surrounding the High Income Child Benefit Charge means certain families—especially those with earnings nearing £80,000—mistakenly think they should not claim at all. In truth, even higher earners can register for Child Benefit and choose not to receive payments while maintaining valuable National Insurance credits.
Hidden Pension Boost
One of the most significant yet frequently misunderstood benefits of claiming Child Benefit is its effect on your future pension. Parents who claim automatically receive National Insurance credits while their child is under 12, helping to safeguard their entitlement to the State Pension. This is especially crucial for those not in employment or earning below the National Insurance contributions threshold, as shortfalls in their record can be prevented. Failure to claim could therefore leave some parents financially disadvantaged in retirement.
Income Rules Explained
If either parent earns above the threshold, the High Income Child Benefit Charge may apply. The charge gradually increases once income exceeds the threshold, and at sufficiently higher incomes, the charge can equal the full amount of Child Benefit received. However, even in these cases, claiming can still be worthwhile to secure National Insurance credits and ensure children automatically receive a National Insurance number before age 16.
HMRC's Message
HMRC is urging parents not to rule themselves out—particularly those with incomes below £80,000—and to check their eligibility via the HMRC app or online service.
