Child Benefit: how it works, eligibility criteria and how to claim
Child Benefit is worth hundreds of pounds per year and claiming it can help build up your state pension entitlement but there are tax pitfalls. We look at who is eligible and how to get the payment
Child Benefit is a valuable payment given to parents or those responsible for raising a child but increasing numbers could see some of the perk clawed back through tax.
If you are responsible for bringing up a child who is under the age of 16, or under the age of 20 but still in approved education or training, you could be entitled to Child Benefit.
This is a valuable payment worth up to £1,406 per year for your oldest child and £930 for any subsequent children (2026/27 rates), with no limit on the number of children you can claim for.
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Alice Haine, personal finance analyst at investment platform Bestinvest, said: “Parents can either use the money to fund everyday costs or deposit it into a Junior ISA to help save for items like a child’s university costs, first car, or deposit on a future property.”
What is the High Income Child Benefit Charge (HICBC)?
High-earning parents could lose some or all of the money through tax.
Child Benefit is means tested, meaning high earners start to lose the payments once their income (or their partner’s income) exceeds £60,000. They lose it entirely once they cross the £80,000 threshold. This is known as the high income Child Benefit Charge (HICBC).
You lose 1% of Child Benefit for every £200 of income you earn over the £60,000 threshold until hitting £80,000. For example, someone earning £75,000 a year would lose 75% of their Child Benefit entitlement.
HMRC does not automatically adjust the amount high earners receive. Rather, you receive the full amount and are then required to return the excess by filing a self-assessment tax return or will have it deducted through your tax code.
Using the government’s Child Benefit tax calculator can help you work out how much you need to repay.
Critics have previously lambasted the HICBC as unfair, as the charge is based on each individual parent’s income rather than household income.
This means a family where one parent earns £80,000 and the other earns nothing at all will not qualify for any Child Benefit, whereas a household where both parents earn £60,000 will qualify for the full amount, despite having a higher total household income (£120,000).
Frozen tax thresholds also mean more parents could find themselves hit with the HICBC as fiscal drag moves them into higher tax brackets faster than expected as their wages rise.
HMRC’s official forecasts, obtained through a Freedom of Information request (FOI) by wealth management firm Quilter, found that the number of families liable for HICBC will rise from 324,000 in 2025/26 to 359,000 in 2028/29. The projected increase of roughly 35,000 reflects the drag of frozen tax thresholds and static benefit parameters against rising nominal incomes, Quilter said.
Most affected families are expected to be in the tapering range of liability, between £60,000 and £80,000 meaning they will repay a proportion of their Child Benefit rather than the full amount.
Shaun Moore, tax and financial planning expert at Quilter, said: “Our FOI shows that tens of thousands more families will be pulled into the High Income Child Benefit Charge over the coming years purely because frozen thresholds let inflation and nominal earnings shifts do the work of tax increases. Families may not be better off in real terms, but more and more of them will see support withdrawn as a result.
“The data shows that each successive year more parents will be subject to clawbacks of Child Benefit that eat into household budgets at a time when costs of living remain high.”
HMRC also recently admitted in a FOI request to Quilter that it does not hold comprehensive data showing how many taxpayers who earn above £100,000 are responsible for children.
Moore, from Quilter, said: “It is worrying that HMRC cannot say how many higher earners have children, because it means the government lacks full visibility of who faces these financial cliff edges.
“As more families cross into higher income brackets in name alone, policymakers are effectively taking a shot in the dark on a key piece of family finances.”
“Together with the rising HICBC caseload, this lack of data shows how fiscal drag is reshaping support for parents. A comprehensive review of how family benefits interact with income policy is needed so that support keeps pace with economic reality.”
There are some strategies parents can use to avoid losing Child Benefit payments. For example, you could qualify for Child Benefit by boosting your pension contributions through a salary sacrifice scheme. This is because making the contributions could bring you back under the threshold.
Why you should still claim Child Benefit even if you have to pay the HICBC
Claiming Child Benefit gives you National Insurance contributions (NICs) which count towards your state pension, provided your child is still under the age of 12. This can be particularly valuable if you have taken time out of work to look after them.
It is still worth registering for the benefit to ensure you receive the NICs, even if you are over the HICBC threshold. There are several ways of returning or declining any money you aren’t entitled to.
Parents can either pay the HICBC money back at the end of each tax year by filing a self assessment tax return, or they can tick a box on the original application form to opt out of receiving the payment (while still receiving the valuable NIC).
A new service, launched last summer, also allows parents to repay any excess Child Benefit through their PAYE tax code.
You will typically qualify if you have no other reason to complete a self-assessment tax return.
If you think you are eligible to repay Child Benefit through PAYE or have been told you are by HMRC, you have until 31 January 2027 to opt in for the latest 2025/26 tax year, which ended on 5 April 2026. You'll only need to do this once – you'll then keep paying the charge through PAYE every year unless your circumstances change.
You can opt in using the online form on Gov.uk or the HMRC app.
How much is Child Benefit?
Child Benefit is currently £27.05 per week for your eldest or only child, and £17.90 per week for additional children. This is equivalent to £1,406.60 per year for your oldest child and £930.80 for any subsequent children. These are the rates for the 2026/27 tax year.
Payments increase each year in line with inflation. The increase happens in April, but is based on the previous September’s inflation reading. The most recent increase for 2026/27 was 3.8%.
Only one person can claim Child Benefit for each child, but there are no limits on the number of children you can claim for.
It should not be confused with the two-child benefit cap, which is something different. This refers to a previous government rule which restricted Universal Credit and child tax credits for families with more than two children, however the cap was scrapped in April 2026.
How to apply for Child Benefit
You can claim Child Benefit 48 hours after you have registered the birth of your child, or once a child comes to live with you. It can be backdated for up to three months.
You can use the government’s online service to make a claim. You will need your child’s birth or adoption certificate, your bank details, your National Insurance number and your partner’s National Insurance number (if you have a partner).
How is Child Benefit paid?
Child Benefit is paid into your account every four weeks on a Monday or Tuesday. You can only get the money paid into one account.
Only one person is able to receive Child Benefit, so you need to decide whether it is better for you or the other parent to claim. If you cannot agree, HMRC will decide on your behalf.
Building up your state pension entitlement
You will automatically receive National Insurance credits if your child is under 12 and you claim Child Benefit. These contribute towards your state pension entitlement.
You need a minimum of 10 years of NICs to qualify for any state pension at all, assuming you fall under the new state pension. To receive the full new state pension amount (currently £12,547 per year), you need 35 years of contributions.
These credits help prevent gaps in your record if you have taken time out of work to look after young children. They can also prove valuable if you do not earn enough to pay National Insurance contributions – perhaps because you have gone part-time and are under the threshold.
If you do not need the credits, your family may be eligible for the support instead.
Your husband, wife or partner can apply to transfer the credits, or another family member who looks after your child can apply for them instead. These are called specified adult childcare credits.
For example, you may wish to transfer your NI entitlement to a grandparent who is involved in childcare responsibilities. They are only eligible to receive them if they are under state pension age.
Quilter says each year of transferred credit is currently worth £330 in additional state pension income (based on 2025/26 rates), potentially adding £6,600 over a 20-year retirement.
Can you claim Child Benefit if you move overseas?
It is likely that you will lose the right to claim Child Benefit if you move overseas, although some countries have a social security agreement with the UK, which could entitle you to the benefit.
You should contact the Child Benefit Office if you go abroad for more than eight weeks.
The government announced in 2025 it was clamping down on claims from parents who have moved abroad in an effort to save £350 million – an attempt to prevent money being lost through fraud and error.
Thousands of people who left the UK but carried on claiming Child Benefit have reportedly been removed from the system already.
How to extend your Child Benefit claim for 16 to 19-year-olds
Child Benefit will stop when your child turns 16, unless they remain in education or training. You will be sent a letter during your child’s last year at school asking you to confirm their next steps.
In 2026, around 1.5 million letters were sent to parents from late April.
Education must be full-time – more than 12 hours a week of supervised study or course-related work experience. This can include A-Levels, T-Levels, the International Baccalaureate, Scottish Highers, most vocational qualifications up to level three, pre-apprenticeships and other approved training. It also includes home schooling.
Your Child Benefit payments will continue once you confirm to HMRC you are still eligible. Parents can do this quickly and easily online or via the HMRC app. You should act by 31 August, otherwise your payments will automatically stop.
Parents can also scan the QR code in their reminder letter which will take them straight to the digital service.
“Child Benefit is a real financial boost for families, so if your teenager already knows they’re staying in education or training after their GCSEs or National 5s, you don’t need to wait for our letter,” said Myrtle Lloyd, chief customer officer at HMRC.
“You can extend your Child Benefit claim today in minutes via the HMRC app or online at GOV.UK.”
