HMRC Urges Parents to Reclaim Child Benefit
HMRC warns parents to opt into child benefit worth £1,355 a year after an increased income threshold. Learn who qualifies, how to claim, and additional support for families.
HMRC Issues Urgent Warning Over Child Benefit Changes
The UK’s tax authority, HMRC, has released a pressing alert advising parents to review their eligibility and opt into child benefit after a significant policy shift. For households raising a child under 16 – or under 20 if they remain in approved education or training – deciding whether to claim child benefit could now mean up to £1,355 a year for your finances.
What’s Changed for Parents in 2025?
HMRC’s recent update raises the threshold at which parents start paying the High Income Child Benefit Charge (HICBC) from £50,000 to £60,000. This adjustment allows thousands more families to either continue claiming or opt back in to receive this vital support.
"Opted out of Child Benefit payments and earn under £80k? You may be missing out on support. The amount you or your partner can earn before you start paying the High Income Child Benefit charge is now £60k. Opt back in online or in the HMRC app." — HMRC
Child Benefit Amounts
| Children | Weekly Payment | Annual Payment |
|---|---|---|
| Eldest or Only Child | £26.05 | £1,355 |
| Each Additional Child | £17.25 | £897 |
- Payments are made every four weeks, typically on a Monday or Tuesday. In some cases, weekly payments are possible.
Understanding the High Income Child Benefit Charge
- When either parent’s income exceeds £60,000, the High Income Child Benefit Charge (HICBC) applies.
- You must repay 1% of your child benefit for every £200 of income over the threshold.
- Once income reaches £80,000, the charge fully cancels out child benefit received.
- If you earn above the threshold, you may opt out of payments to avoid excess tax, but you retain eligibility – especially for National Insurance credits.
Key Action: If you previously opted out due to the lower threshold, you are now eligible to reclaim by logging onto your HMRC account online or via the official app.
How to Opt Back In
To restore your payments:
- Visit the HMRC website or use the HMRC app.
- Alternatively, contact the Child Benefit Office by phone or post.
- HMRC advises it can take up to 28 days for payments to recommence.
- If you qualify for backdated payments, HMRC will notify you in writing.
“Missing out on child benefit payments can reduce not just income, but future State Pension entitlements for those caring for children under 12.”
Core Eligibility Rules
- You must be responsible for a child under 16 (or under 20 in recognised training/education).
- You must live with the child and contribute financially at least equal to the benefit rate.
- Eligibility is affected if the child goes into hospital/care or lives elsewhere.
If in doubt, contact the Child Benefit Office for clarification.
National Insurance Credits & State Pension
Claiming child benefit for children under 12 entitles parents to National Insurance (NI) credits. Accumulating 35 years of NI credits is critical to become eligible for the full new State Pension.
Highlight:
Claiming even if you opt out of payments (because of high income) protects your future pension.
What Next for Affected Families?
To ensure you do not miss out on available support:
- Review your current household income and benefit status.
- Check the new threshold and HICBC rules on the HMRC portal.
- Re-register or opt in if your circumstances now allow.
Additional Support for Parents
Childcare remains a significant cost for many. The following government initiatives are also available:
- 30 hours free childcare: For 3- and 4-year-olds if parent(s) work 16+ hours/week and earn under £100,000.
- Tax credits: Support for families with children under 20.
- Childcare vouchers: Tax and NI savings for pre-October 2018 joiners.
- Tax-free childcare: For working families (including self-employed), government adds £2 for every £8 you save.
| Scheme | Who Qualifies | Key Details |
|---|---|---|
| 30 hours Free Childcare | Parents of 3/4-year-olds working | Max income £100,000; min 16 hours/week |
| Tax Credits | Families with children <20 | Income-related support for childcare costs |
| Childcare Vouchers | Pre-October 2018 scheme members | Up to £55/week tax & NI saving |
| Tax-free Childcare | Most working & self-employed parents | Gov’t pays extra £2 per £8 saved |
“Household budgets are stretched, so maximising your entitlement can make a substantial impact. Don’t assume you’re ineligible—check the up-to-date thresholds and reapply if needed.”
Responsible Claiming – Your Next Steps
- If you were paid too much or too little, immediately contact the Child Benefit Office.
- Track all official correspondence to ensure your payment and credits are properly recorded.
- Be mindful of changing circumstances—updates must be reported to HMRC promptly.
Help is available. Always check your eligibility and don’t hesitate to apply or appeal. For further details, use the links above or speak directly with HMRC.
