HMRC has urged families to explore whether they are eligible for Child Benefit, as they are likely missing out on free money, here’s everything your need to know
British families are encouraged to check if they may be eligible for additional financial support from HM Revenue and Customs (HMRC) following recent threshold increases.
As of April 6, 2025, Child Benefit payments across the UK have increased by 1.7%, enabling more Brits to claim financial assistance amid the rising cost of living. In the UK, parents and carers can claim Child Benefit, a form of financial assistance designed to help with the overwhelming costs of raising children. HMRC provides financial aid and pays a sum for each child under 16, or 20 if the child is in full-time education or attending an approved educational institution.
HMRC issues alert as it urges thousands of parents to claim £2,000 help
Additionally, Child Benefit contributes to accumulating National Insurance credits, which in turn help enhance a person’s State Pension. At present, Child Benefit provides £26.05 per week for a single child, totalling £1,354.60 per year.
Any additional children will receive £17.25 per week, which equates to £897 per year. In other words, parents with two children will receive a total Child Benefit payment of £2,251.60 per year, and those with three children will receive a total of £3,148.60 per year.
However, there’s a cap on how much you or your partner can earn before losing child benefits. According to the High Income Child Benefit Charge (HICBC), benefits start to decrease if either of you earns above £60,000 and are completely eliminated when earnings reach £80,000 or more.
Once the Child Benefit recipient earns more than £60,000, they will incur a tax charge. This is equal to 1 per cent of the total benefit claim received for every £200 earned over £60,000. This charge means that you will need to repay a portion of your Child Benefit through your tax return.
You can register for Child Benefit 48 hours after registering your child’s birth or once a child comes to live with you. The registration can be backdated for up to three months.
According to new data released by HMRC, the number of families claiming Child Benefit in the UK has dropped to its lowest level since 2003, coinciding with the introduction of the HICBC. HMRC’s most recent estimates cover the 2021/22 tax year, during which 390,000 individuals paid a total of £450 million of HICBC penalties and fees..
Shockingly, fines can be up to 30% of what you owe HMRC in Child Benefit payments, with late payment interest on taxes now sitting at 8.5%. This is the highest it has ever been.
If you owe several years of payments, the amount you owe could become quite expensive, with reports of several parents being forced to repay multiple years’ worth of benefits.
