Parents are being urged not to ignore an HMRC rule that could protect their future State Pension, even when their earnings mean Child Benefit must be repaid through tax. The High Income Child Benefit Charge applies to families where the highest earner has an income above £60,000.
Under the charge, anyone earning between £60,000 and £80,000 must repay 1% of Child Benefit for every £200 over £60,000. If their income exceeds £80,000, the tax charge equals 100% of the benefit received.
Why claiming still matters
Tax experts say many families wrongly conclude there is no point claiming Child Benefit if they are affected by the high income charge. However, not claiming could mean missing out on National Insurance credits that count toward the State Pension.
The warning comes as many parents take career breaks or reduce their working hours to care for young children, potentially leaving gaps in their National Insurance record. Claiming Child Benefit can automatically secure National Insurance credits for a parent looking after a child under the age of 12.
These credits help build the qualifying years needed for the State Pension. They are particularly valuable for parents who are not working, work part-time, or earn too little to pay National Insurance contributions.
'A valuable feature'
Andy Wood, tax expert at Tax Barrister UK, said many parents do not realise the long-term value of making a claim. He said: "Many people think of Child Benefit purely as financial support for raising children, but one of its most valuable features is often overlooked."
He added: "A Child Benefit claim can also protect your future State Pension by securing National Insurance credits during periods when you're not working or your earnings are too low to pay National Insurance."
How to claim Child Benefit
According to the Government, parents can claim Child Benefit 48 hours after registering the birth of their child, or when a child comes to live with them. Claims can be backdated by up to three months, meaning families should not delay if they are eligible.
The easiest way to apply is online, although claims can also be made by phone or post.
