UK Slashes Child Benefit for Families Abroad: New Rules Explained | The Guardian
UK slashes Child Benefit for children living overseas

In a significant move to tighten welfare rules, the UK government has launched a stringent clampdown on Child Benefit payments for families whose children reside permanently outside the country.

The new regulations, enforced by HM Revenue and Customs (HMRC), introduce a rigorous "UK link" test. This assessment will determine a claimant's genuine connection to Britain, potentially cutting off support for thousands.

What is the new 'UK link' test?

The cornerstone of the reform is the new test designed to prove a claimant's strong ties to the UK. Eligibility will now hinge on more than just British citizenship or parental nationality. Authorities will scrutinise factors such as:

  • The amount of time the child and claimant actually spend in the UK.
  • Whether the child is enrolled in a British school.
  • The family's history of UK residence and future intentions to return.

This represents a major shift from previous, more lenient rules, aiming to ensure the benefit system supports those with a tangible life in Britain.

Why is this change happening now?

The policy shift, effective from August 2025, follows growing governmental concern over the long-term cost of paying benefits to children who may have minimal connection to the UK's economy and society. It reflects a broader trend of reassessing welfare eligibility in an increasingly globalised world.

Officials argue the measure protects public funds and ensures the sustainability of the benefit system for families who truly live and contribute to the UK.

Who will be affected?

The changes will primarily impact:

  • British nationals living and working abroad whose children remain in their country of origin.
  • Expatriate workers claiming for children still residing overseas.
  • Families where children are living abroad with other relatives for extended periods.

Affected families are urged to contact HMRC to understand how the new rules specifically apply to their circumstances and to avoid potential overpayments that must be repaid.