In a significant shake-up for parents across the UK, the HM Revenue and Customs (HMRC) has warned that thousands of families may see their Child Benefit payments halted as early as the end of this month. With the deadline for crucial updates looming, parents are urged to act swiftly to ensure they continue receiving this vital financial support.
Child Benefit, which provides £26.05 a week for the first child and £17.25 for each additional child, is claimed by over seven million families. However, eligibility is contingent upon specific conditions, particularly concerning a child's education status. Parents are required to update their personal information on the government website by midnight on May 31, 2025, to guarantee Child Benefit payments for June.
For parents whose children are 16 years old or older and are still in full-time education or training, Child Benefit can be received until the age of 20. This includes various educational paths such as A-Levels, NVQs, and home education, but it notably excludes university or BTEC qualifications. Parents must inform HMRC if their child leaves approved education or training, as payments will cease at the end of February, May 31, August 31, or November 30, depending on which date arrives first.
May 31 is particularly critical for parents of children finishing their full-time non-advanced education or training in March, April, or May 2025. For those in Scotland pursuing a 'higher certificate' or 'advanced higher certificate' with exams concluding before the end of May, the deadline also falls on August 31. Meanwhile, for educational or training programs wrapping up in September, October, or November, parents must notify HMRC by November 30, 2025.
HMRC has issued a clear warning: "If you fail to update your details in time, you may still be able to claim Child Benefit, but your payments might be late." The agency emphasizes the importance of reporting any changes that could affect Child Benefit eligibility, which includes notifying them if a child starts receiving Universal Credit, Jobseeker's Allowance (JSA), or Employment and Support Allowance (ESA), or if there are changes in the child's name or living situation.
The repercussions of failing to keep HMRC updated can be significant. If a child leaves approved education or training, Child Benefit stops on August 31 on or after their 16th birthday. Parents must also inform HMRC if their child continues in education or training after turning 16, or if they leave education or training thereafter. To report these changes, parents need to sign in with their Government Gateway user ID and password. If they do not have a user ID, they can create one or use their email address to receive a confirmation code for signing in.
In addition to the standard Child Benefit payments, families must also be aware of the High Income Child Benefit Charge, which affects couples with higher incomes. For every £200 earned above the £60,000 threshold, 1% of the child benefit must be repaid. This means that if a couple earns over £80,000, they will be required to repay 100% of the benefit. This charge is typically settled annually through a self-assessment tax return. However, a new digital service is expected to launch in the summer of 2025, allowing families to pay the charge via their PAYE tax code.
The High Income Child Benefit charge threshold was raised from £50,000 to £60,000 in April 2024, a change that has been highlighted in recent HMRC communications. A tweet from HMRC stated: "Opted out of child benefit payments and earn under £80k? You may be missing out on support. The amount you or your partner can earn before you start paying the High Income Child Benefit charge is now £60k." This adjustment aims to provide more families with access to financial support without the burden of repayment.
Foster parents and adoptive parents are also eligible to claim Child Benefit, provided the local council does not fund the child's accommodation or maintenance. Those caring for a friend's or relative's child may also qualify for the benefit. There is no limit on the number of children for whom a parent can claim Child Benefit, but only one person can claim if two people are caring for a child.
The stakes are high for families relying on this crucial financial support, especially as the deadline draws near. Parents are encouraged to double-check their eligibility and ensure that all necessary updates are made to avoid any interruption in payments. With the government emphasizing the importance of timely communication, many families find themselves at a crossroads, needing to navigate the complexities of the Child Benefit system.
As the May 31 deadline approaches, parents across the UK are left to wonder: will they be able to keep their much-needed Child Benefit, or will they face the stress of halted payments? With over seven million families relying on this support, the urgency is palpable, and the government is doing its part to ensure that parents are informed and prepared.
