The tax office has urged parents to check their Child Benefit entitlement as a threshold change could mean many may be missing out on a “cash boost”. As of April 2024, households can now earn up to £60,000 and be eligible for the benefit.

In a new post on X, HM Revenue and Customs (HMRC) wrote: “Opted out of Child Benefit payments because of the High Income Child Benefit Charge? The amount you or your partner can earn before paying the charge is now £60k, so you may be missing out on a cash boost. Opt in online or in the HMRC app.” Before the recent changes, families could only claim the full Child Benefit if their net income was £50,000 or less. Once income exceeded this threshold, the High Income Child Benefit Charge (HICBC) began to apply.

The HICBC reduced Child Benefit by 1% for every £100 earned above £50,000, meaning that once a parent’s income reached £60,000, they had to repay the entire amount of Child Benefit through self-assessment.

Now, the rules have changed. The threshold at which the HICBC starts has increased to £60,000. Instead of reducing the benefit by 1% for every £100 over the threshold, the reduction is now 1% for every £200 earned above £60,000.

This means Child Benefit is now fully withdrawn when income reaches £80,000, rather than £60,000. According to HMRC’s impact assessment published last year, this change will positively affect around 485,000 families. Of these, about 305,000 people will see their HICBC reduced, and 170,000 individuals will no longer be liable for the charge at all.

It is important for families to check whether they qualify for Child Benefit, as claiming can increase household finances by thousands of pounds each year.

How much is Child Benefit worth?

There are two child benefit rates for the 2025/26 tax year. The rate for the eldest or only child is £26.05 per week.

For every additional child, the payment is £17.25 per week. For a family with two children, this means they could receive up to £2,251.60 per year.

Who is eligible for Child Benefit?

To be eligible for Child Benefit, you must live in the UK and be responsible for a child under 16. Responsibility usually means the child lives with you, or you contribute at least as much as the Child Benefit amount towards their care.

Only one person can claim Child Benefit for each child, even if both parents are present. In some cases, Child Benefit can continue until the child turns 20, provided the child remains in approved education or training, such as A-Levels, NVQs, or home education. University courses and BTEC qualifications do not count for this purpose.

Deciding who should claim Child Benefit is important, as only one person can receive it for each child. The person who claims will also receive National Insurance credits, which count towards their state pension and can help fill gaps in their record if they are not working or do not earn enough to pay National Insurance contributions.

To claim Child Benefit, parents can fill out a form on the GOV.UK website, or apply by post or phone.