Little-known HMRC rule change means parents missing out on £1,300 each

The income threshold for Child Benefit was increased this year meaning more families may now be eligible to claim the vital support from HMRC.

Parents could be missing out on benefit worth at least £1,300 after threshold increased. The income threshold for Child Benefit was increased this year meaning more families may now be eligible to claim the vital support from HMRC.

Families could be unnecessarily missing out on benefits after an entitlement change. Credit management company Lowell has revealed in a recent study that over half (54%) of UK parents have relied on credit for their children's essential school items or activities, causing 69% to fret over the repayments.

This increase could mean many families that previously didn’t qualify for Child Benefit can now claim it as the cost of living crisis continues. To apply, you’ll have to complete a claim form and send it to the Child Benefit Office.

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Even if you’re on other benefits, you’ll still receive the same amount unless the Benefit Cap applies. As a parent or guardian, you can claim Child Benefit for the number of children you take care of. It doesn’t matter if you have a job or have savings when claiming Child Benefit.

Child Benefit payments are currently set at £25.60 per week for the eldest or only child, which could increase income by £1,333 over the year, and £16.95 per week for each additional child, potentially adding up to an extra £881 a year. These rates were implemented on April 6, 2024.

The benefit is accessible to those caring for children under 16, or under 20 if they are in approved education or training. Payments are usually made every four weeks, but single parents or those receiving certain benefits can choose weekly payments.

Eligible parents can apply for Child Benefit as soon as 48 hours after registering a birth or when a child comes to live with them. All children in Year 1 and Year 2 automatically qualify for free school meals. For those in Year 3 and above, eligibility extends to families receiving Universal Credit or benefits such as Child Tax Credit, Income Support, or Income-Based Jobseeker's Allowance.