Approximately 1.5 million families across the UK are being warned that their Child Benefit payments could be suspended this summer unless they take immediate action. HM Revenue & Customs (HMRC) is sending reminder letters to parents of 16 to 19-year-olds, urging them to confirm whether their teenager will continue in education or training after completing GCSEs or National 5s.
Deadline Approaching
Child Benefit automatically stops on August 31 after a child turns 16, unless parents proactively extend their claim. HMRC's online portal has been open since April 1, allowing parents to renew claims quickly via the HMRC app or GOV.UK. Last year, 874,000 parents extended their claims, with over half using digital methods.
What Families Could Lose
The benefit is worth up to £27.05 per week (or £1,406.60 annually) for the eldest or only child, and £17.90 per week for each additional child. Failing to respond could mean losing hundreds or even thousands of pounds each year.
Who Remains Eligible
Child Benefit can continue if the teenager stays in full-time non-advanced education (more than 12 hours weekly of supervised study or work experience) or unpaid approved training. However, payments cannot be claimed if the course is part of a paid employment contract. Parents whose children are already enrolled on a course previously notified to HMRC need not act again.
Beware of the Tax Trap
Families should also be aware of the High Income Child Benefit Charge. If either parent earns between £60,000 and £80,000, the higher earner may need to repay some or all of the benefit through PAYE or Self Assessment.
Critical Deadline
Parents must confirm their teenager's arrangements by August 31 or risk payments being halted automatically. With letters dispatched from May 8, HMRC is encouraging families to act promptly to avoid disruption to their finances.
