Millions of families could be missing out on vital financial support as HM Revenue and Customs (HMRC) encourages parents earning below £80,000 to verify their eligibility for Child Benefit. The tax authority confirms that over 1.4 million parents and carers have already submitted online claims - yet countless others may still be overlooking payments potentially worth hundreds, or even thousands, of pounds annually.
At current rates, families are entitled to £26.05 weekly for their eldest child and £17.25 for each subsequent child, distributed every four weeks. This valuable contribution can significantly ease household budgets amid the ongoing cost of living crisis. However, the alert focuses on income thresholds - with many people incorrectly believing they are ineligible.
Who qualifies - and why countless families are losing out
Child Benefit is accessible to anyone responsible for raising a child aged 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. Nevertheless, uncertainty surrounding the High Income Child Benefit Charge means certain families - especially those with incomes nearing £80,000 - erroneously assume they should not claim whatsoever.
In practice, even higher earners can still register for Child Benefit and decline receiving payments while maintaining valuable National Insurance credits.
Overlooked pension advantage many fail to spot
One of the most significant - yet frequently overlooked - benefits of claiming Child Benefit is its effect on your future pension. Parents who make a claim automatically qualify for National Insurance credits while their child is under 12, safeguarding their entitlement to the State Pension. This proves especially crucial for those not in employment or earning beneath the National Insurance contributions threshold - ensuring gaps in their record are prevented. Not claiming could consequently leave some parents financially disadvantaged in retirement.
How much you might receive
- £26.05 per week for the eldest or only child
- £17.25 per week for each additional child
That 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.
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. At sufficiently higher incomes, the charge can equal the full amount of Child Benefit received. But 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: don't assume you're not eligible
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.
