HMRC Child Benefit warning as families face losing £1,300

South Wales Argus

2 days ago

Last year, 870,000 parents extended their Child Benefit payments, with most applying on the HMRC app or the digital service, but this year it's estimated more than 214,000 eligible families are missing out on this vital support, with many unaware of the hidden perk that comes with it.
Child Benefit automatically stops on 31 August after a child turns 16 unless parents confirm their teenager is staying in full-time education or approved training.
The payment is worth £26.05 a week for the eldest or only child (£1,354.60 a year) and £17.25 a week for each additional child (£897 a year).
Fiona Peake, Personal Finance Expert at Ocean Finance, explains: "Missing the renewal deadline means you're turning down free money your family is entitled to. For lower-income families already juggling bills, losing over £100 a month can mean cutting back on essentials or relying on credit to get by.
'The bigger, hidden cost is the loss of National Insurance credits that count towards your state pension. Missing just one year could mean losing around £342 a year in retirement income, and missing the full eligibility period could cost more than £4,000 a year. If you take time out of work to raise children and don't claim, you could be short-changing yourself by thousands in later life.'
HMRC sent letters between May and July to remind parents to renew, but if they miss the deadline, payments will stop from September.
5 ways for parents to make the most of HMRC child benefits
Renew early: "As soon as you know your child's plans after GCSEs, renew your claim. Use the HMRC app, go online at GOV.UK, or scan the QR code on your letter," says Fiona. "Do not wait until the last week of August, you could lose out on September's payment.' Check your claim: "Even if you earn over £50,000 and repay the High Income Child Benefit Charge, still make the claim. You'll keep the National Insurance credits that count towards your pension, which could be worth thousands later on." Track deadlines: 'Put HMRC renewal dates in your phone calendar. This small step can protect over £1,300 a year for your first child plus pension credits.' Adjust if you missed it: "If payments have stopped, review your spending now so you don't turn to costly borrowing to cover essentials.' Get help for money worries: 'If losing Child Benefit has left you struggling, check if you're eligible for other benefits like Universal Credit or programs run through your local council. If you have other debts that run up your monthly expenses, debt consolidation could be an option.'
Is your 16-19 year old planning to stay in education or training in September? Extend your Child Benefit claim now. Find out how 👇https://t.co/pDKoAafTZv — HMRC Press Office (@HMRCpressoffice) May 13, 2025
How much is Child Benefit?
Child Benefit is currently worth £26.05 per week - or £1,354.60 a year - for the eldest or only child and £17.25 per week - or £897 a year - for each additional child. More than 870,000 parents extended their Child Benefit claim for their teen last year with the majority confirming online or via the HMRC app in minutes.
Myrtle Lloyd, HMRC's Director General for Customer Services, says: "Child Benefit is an important boost to families. As soon as you know what your teenager is planning to do, extend your claim in minutes to guarantee your payments continue in September. Simply go to GOV.UK or the HMRC app to confirm today."
Child Benefit can continue to be paid for young people who are studying full time in non-advanced education as well as unpaid approved training courses.
Visit the HMRC Child Benefit website to check full eligibility.
Rebecca Fagan, benefit and welfare information officer at Advice Direct Scotland, says: 'Child Benefit is really important for many households, particularly at a time when budgets are being stretched by the cost of living and energy.
'Our message to parents is not to delay, but to act now. Extending your child benefit claim is easy, and it could put thousands of pounds in your pocket.
"Our free, impartial service at taxadvice.scot is here to help anyone who is confused about child benefit. People can visit taxadvice.scot or call 0800 756 3381 for support.'
What about the High Income Child Benefit Charge?
If either the claimant or their partner has an individual income of between £60,000 and £80,000, the higher earner will be subject to the High Income Child Benefit Charge.
For families who fall into this category, the online Child Benefit tax calculator provides an estimate of how much benefit they will receive, and what the charge may be.
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From this summer, as part of the government's Plan for Change, families will have the option to use a new digital service to pay the charge directly through their PAYE tax code instead of filing a Self Assessment tax return.
The new service will cut red tape for eligible employed parents who are liable to the High Income Child Benefit Charge but those who choose to pay the charge through their Self Assessment can continue to do so.
Families who have previously opted out of Child Benefit payments can opt back in and restart their payments quickly and easily online or via the HMRC app.
There's also an HMRC reminder for the Child Trust Fund - don't miss out
Teenagers turning 16 can take control of their HMRC Child Trust Fund savings account, which could be worth thousands of pounds, and can withdraw the money once they turn 18. Child Trust Funds were set up for every child born between 1 September 2002 and 2 January 2011.
If teenagers or their parents and guardians know who their Child Trust Fund provider is, they can contact them directly. If they don't know where their account is, they can use the free online tool on GOV.UK to find out who their Child Trust Fund provider is.