Many families across the UK may be missing out on up to £1,300 a year in Child Benefit payments following an important rule change. The government, through HM Revenue and Customs (HMRC), is actively encouraging eligible parents to review their situation and submit a claim if they have not already done so.
This renewed push comes after updates to the High Income Child Benefit Charge (HICBC) rules, which now allow more families to keep some or all of their Child Benefit. For thousands of households, this change could mean extra financial support at a time when living costs remain high.
In this article, we explain what has changed, who qualifies, how much you can receive, and how to claim. We also include a helpful table and answers to common questions.
Understanding Child Benefit in the UK
What Is Child Benefit?
Child Benefit is a tax-free payment made to parents or guardians responsible for raising a child under 16, or under 20 if they remain in approved education or training.
It is designed to help with everyday expenses such as food, clothing, school supplies, and childcare. The benefit is paid every four weeks, though single parents may request weekly payments.
How Much Is Child Benefit Worth?
As of the current rates:
- £25.60 per week for the first or only child
- £16.95 per week for each additional child
Over the course of a year, this adds up to:
- £1,331.20 annually for the first child
- £881.40 annually for each additional child
For a family with one child, the total yearly value is around £1,300, which is why HMRC is urging parents not to miss out.
What Has Changed in the High Income Child Benefit Charge?
Previous Rules
Under earlier rules, families where one partner earned over £50,000 began to lose Child Benefit through the High Income Child Benefit Charge (HICBC). Once income reached £60,000, the entire benefit had to be repaid through the tax system.
This discouraged many higher-earning parents from claiming at all, even though claiming can protect National Insurance credits.
The New Income Threshold
The updated rule has increased the starting threshold:
- The HICBC now begins at £60,000 instead of £50,000
- The benefit is fully withdrawn once income reaches £80,000
This change means families with income between £50,000 and £60,000 no longer face any charge. Those earning between £60,000 and £80,000 will lose it gradually rather than immediately.
Why This Matters
Because of this rule change, thousands of parents who previously opted out may now qualify for full or partial Child Benefit payments.
HMRC has clearly stated that eligible families should review their position and submit a claim if they now qualify under the updated income thresholds.
How the Rule Change Impacts Families
Example Scenario
Let’s consider a household where one parent earns £58,000 annually.
Under old rules:
They would have paid back part of the benefit through HICBC.
Under new rules:
They can now receive the full Child Benefit without any charge.
This could mean an extra £1,300 per year for a family with one child.
Income and Benefit Breakdown Table
Below is a simple overview of how income affects Child Benefit under the new rules:
| Annual Income of Highest Earner | Child Benefit Impact |
|---|---|
| Below £60,000 | Full benefit received |
| £60,000 – £80,000 | Gradual reduction via HICBC |
| Above £80,000 | Full amount repaid |
This updated structure significantly expands eligibility.
Why HMRC Is Urging Parents to Claim
Many Families Never Claimed
When the income limit was lower, some parents chose not to claim at all to avoid tax complications. However, not claiming can have long-term consequences.
Even if you choose not to receive payments, submitting a Child Benefit claim ensures you:
- Receive National Insurance credits
- Protect your State Pension entitlement
- Maintain eligibility records for your child
National Insurance Credits Are Crucial
Parents who stay at home or work part-time may not earn enough to qualify for full National Insurance contributions. Claiming Child Benefit automatically provides credits, which count toward your future State Pension.
Failing to claim could mean losing valuable pension years.
How to Claim Child Benefit After the Rule Change
Step-by-Step Guide
- Visit the official HMRC website
- Complete the Child Benefit claim form
- Provide your child’s birth certificate
- Submit your details online or by post
If you previously opted out of payments, you can restart them easily.
Can You Backdate a Claim?
Child Benefit can usually be backdated for up to three months. This means if you were eligible but did not apply, you might still receive some missed payments.
Common Mistakes Parents Make
Assuming You Are Not Eligible
Many parents incorrectly assume that earning above £50,000 automatically disqualifies them. This is no longer the case.
Confusing Household Income with Individual Income
The HICBC applies to the highest individual earner in the household, not combined household income.
For example:
If both parents earn £40,000 each, no charge applies because neither individual earns above £60,000.
The Financial Impact in 2026 and Beyond
With ongoing cost-of-living pressures, every source of support matters. Child Benefit remains one of the most straightforward and accessible forms of government assistance.
Over 18 years, Child Benefit for one child could total more than £23,000. That is a substantial financial contribution toward raising a child in the UK.
The updated HICBC threshold ensures that middle-income families are not unfairly penalised.
Long-Term Benefits Beyond Cash Payments
State Pension Protection
Claiming Child Benefit helps protect your eligibility for the full State Pension. Missing even a few years of National Insurance credits could reduce future payments.
Access to Other Support
Child Benefit registration can also:
- Help secure a National Insurance number for your child
- Provide proof of parental responsibility
- Strengthen eligibility for certain means-tested benefits
Should Higher Earners Still Claim?
Even if your income exceeds £80,000 and you must repay the full amount, it may still be beneficial to submit a claim to secure National Insurance credits.
You can opt to receive the benefit without being paid, avoiding tax repayment while still maintaining credit records.
This approach ensures you protect your long-term financial position.
Key Takeaways from the HMRC Child Benefit Rule Change
- Income threshold increased from £50,000 to £60,000
- Full withdrawal now occurs at £80,000
- Families could receive up to £1,300 annually for one child
- Claiming protects National Insurance credits
- Payments can be backdated for three months
This change significantly expands eligibility and reduces financial penalties for middle-income households.
Conclusion
The recent HMRC Child Benefit rule change represents a meaningful financial opportunity for UK families. By increasing the High Income Child Benefit Charge threshold from £50,000 to £60,000 and extending the taper up to £80,000, the government has widened access to this essential support.
For parents who previously opted out, now is the time to reassess eligibility. Claiming Child Benefit is not just about receiving up to £1,300 per year; it is also about safeguarding National Insurance credits and protecting your future State Pension.
In today’s economic climate, overlooking available support can have long-term consequences. Reviewing your income, understanding the updated rules, and submitting a claim could provide both immediate financial relief and lasting security.
FAQs
Who qualifies for Child Benefit after the new rule change?
Anyone responsible for a child under 16, or under 20 in approved education, can claim. The HICBC now starts at £60,000.
Can I claim Child Benefit if I earn over £60,000?
Yes. If you earn between £60,000 and £80,000, the benefit is gradually reduced. Above £80,000, it must be repaid.
Is it worth claiming if I have to repay it?
Yes. Claiming ensures you receive National Insurance credits, which protect your future State Pension.