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Child Benefit payments for thousands of parents are set to end on May 31. The benefit provides £26.05 per week for the first child and £17.25 for each additional child and is available to those responsible for a child under 16 or under 20 if they remain in approved education or training.
Eligible courses include A-Levels, NVQs, and home education but exclude university or BTEC qualifications. Payments stop at the end of February, May, August, or November, depending on when the child leaves approved education or training.
Currently, over seven million families receive Child Benefit. To qualify, the child must live with the claimant or the claimant must contribute at least the equivalent of the Child Benefit amount towards the child's care. Foster parents, adoptive parents, and those caring for a friend’s or relative’s child may also be eligible if the local council isn’t funding the child's accommodation or maintenance.
There is no limit to the number of children for whom Child Benefit can be claimed, but only one person can claim per child.
High Earners and the High Income Child Benefit Charge
High earners are reminded they may need to repay some or all of their Child Benefit under the High Income Child Benefit Charge. Those earning over £60,000 must repay 1% of their Child Benefit for every £200 earned above the threshold. Once earnings exceed £80,000, the entire benefit must be repaid.
This charge is typically settled through a self-assessment tax return but will soon be payable via PAYE tax codes with a new digital service expected to launch by summer 2025.
Families can also choose to forgo Child Benefit payments while still receiving National Insurance credits to protect their state pension.
In April 2024, the income limit for the High Income Child Benefit Charge increased from £50,000 to £60,000. HMRC recently urged those earning under £80,000 who had opted out of Child Benefit to reconsider, as they could be missing out on potential support.
