Money-saving guru Martin Lewis has issued an urgent plea to parents across the UK, revealing that many families could be missing out on thousands of pounds in unclaimed Child Benefit payments.
The Hidden Child Benefit Trap
In his latest consumer alert, the founder of MoneySavingExpert.com explains how a poorly understood tax rule is causing parents to miss out on vital financial support. "This is one of those rare cases where people could be owed substantial sums," Lewis stated.
Who's Affected?
The issue primarily affects families where:
- One parent earns between £50,000-£60,000 annually
- Parents mistakenly believe they're ineligible for Child Benefit
- Families haven't registered because they thought it would be clawed back
How Much Could You Claim?
According to Lewis, the potential amounts are significant:
- £1,248 per year for the first child
- £826 per year for each additional child
- Thousands in potential backdated claims
The Tax Charge Explained
The confusion stems from the High Income Child Benefit Charge, which requires higher earners to repay some or all of their Child Benefit through the tax system. However, Lewis emphasizes that even those affected should still claim, as it preserves valuable National Insurance credits that count toward your state pension.
How to Check If You're Owed Money
Lewis recommends these immediate steps:
- Check if your household income falls in the £50,000-£60,000 range
- Confirm whether you've been claiming Child Benefit
- If not, contact HMRC about potential backdated claims
- Consider registering even if you'll need to repay some benefits
The consumer champion warned that time is of the essence, as there are strict time limits for backdated claims. "Don't let bureaucratic confusion cost you thousands," Lewis urged.
