The HM Revenue and Customs (HMRC) is urging households earning less than £80,000 per year to come forward and check their eligibility for unclaimed benefits. The most significant focus is on Child Benefit, which provides crucial financial support for families raising children.
Despite widespread availability, many families have not claimed Child Benefit, often due to misunderstandings about eligibility rules—particularly regarding the High-Income Child Benefit Charge (HICBC). Now, HMRC is encouraging all families to review their entitlements to avoid missing out on financial support and potential State Pension contributions.
Why Is HMRC Pushing for More Claims?
HMRC has found that a large number of parents who earn under £80,000 have not claimed Child Benefit, leading to substantial financial losses. Failing to claim also means missing out on National Insurance (NI) credits, which contribute to future State Pension eligibility.
Recent reports suggest that 214,000 parents per year fail to apply for Child Benefit, risking significant pension losses over time. If a parent misses just four years of NI contributions, it could result in a State Pension shortfall of up to £30,000 in retirement.
What Is Child Benefit?
Child Benefit is a financial allowance available to UK residents responsible for raising children. The current rates (as of 2024) are:
- £25.60 per week for the eldest or only child (£1,331.20 per year).
- £16.95 per week for each additional child (£881.40 per year per child).
For a household with two children, this equates to an annual support of £2,212.60.
Who Is Eligible?
- Parents or guardians of a child under 16 (or under 20 if in education or training).
- Families where neither parent earns over £50,000 per year can claim the full benefit.
- Households where one parent earns between £50,000 and £60,000 can still claim, but will face the High-Income Child Benefit Charge (HICBC).
- Even families earning over £60,000 can still claim, but they may need to pay back the full benefit via tax.
Why Should Higher Earners Still Claim?
Some families choose not to claim Child Benefit due to concerns about the HICBC. However, HMRC warns that this decision could result in missing crucial National Insurance (NI) credits, which contribute towards future State Pension entitlement.
How NI Credits Affect the State Pension
- Each year of missed NI contributions could reduce future State Pension payments.
- If a parent is not working or earning below the NI contribution threshold, claiming Child Benefit ensures they receive NI credits.
- Even if a household’s income exceeds £60,000, they should still claim but opt out of payments, ensuring pension credits are recorded.
How to Claim Child Benefit
To apply, parents need to:
- Complete a CH2 Form – Available on the official HMRC website.
- Provide their child’s birth certificate.
- Submit the application online or by post.
- If previously opted out, contact HMRC to reinstate the claim.
What If You’re Concerned About the High-Income Child Benefit Charge?
- If you earn between £50,000 and £60,000, part of your Child Benefit may be reclaimed through tax.
- If you earn over £60,000, you may need to repay the full amount.
- Opting out of payments ensures NI credits are still received without receiving the money directly.
Other Unclaimed Benefits for Families
Aside from Child Benefit, there are other forms of government support many families earning under £80,000 may be eligible for:
1. Pension Credit
- Available to retirees with low income.
- Provides extra money for living expenses and helps qualify for other benefits.
- Learn more at www.gov.uk/pension-credit.
2. Universal Credit
- A means-tested benefit providing support for low-income working families.
- Those struggling with rent, childcare costs, or other expenses may qualify.
- Apply at www.gov.uk/universal-credit.
3. Free Childcare Support
- Parents of 3 and 4-year-olds can get up to 30 hours of free childcare per week.
- Some 2-year-olds from lower-income families may also qualify.
- Check eligibility at www.childcarechoices.gov.uk.
Act Now—Check Your Entitlement Today
With millions of pounds in unclaimed benefits, HMRC is pushing more families to review their entitlements. The most significant reason to claim Child Benefit, even if you’re a high earner, is to protect your future pension rights.
To check your eligibility and apply:
- Visit HMRC’s official site: www.gov.uk/child-benefit
- Check State Pension credits: www.gov.uk/check-national-insurance-record
- Get tax advice from Citizens Advice: www.citizensadvice.org.uk
Final Thoughts
Families across the UK earning less than £80,000 per year should act now to ensure they are not missing out on essential financial support. Whether you are entitled to Child Benefit or other government schemes, taking a few minutes to check your eligibility could mean extra money for your family and a more secure financial future.
If you have previously opted out of Child Benefit, consider reinstating your claim today—not just for immediate financial support, but also to protect your State Pension.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
