HMRC says people earning under £80,000 could be missing out | Personal Finance | Finance

Millions of families could be leaving cash on the table as HM Revenue and Customs (HMRC) urges parents earning under £80,000 to check if they are entitled to this benefit.

The tax authority says more than 1.4 million parents and carers have already claimed Child Benefit online – but many more could still be missing out on payments worth hundreds, or even thousands, of pounds a year. Under current rates, families can receive £26.05 a week for their first child and £17.25 for each additional child, paid every four weeks – a boost that can make a meaningful difference to household finances during the cost of living squeeze.

But the warning centres on income thresholds – with many wrongly assuming they are not eligible.

Who can claim – and why many are missing out

Child Benefit is available to anyone responsible for bringing up a child under 16 – or under 20 if they remain in approved education or training. There is no cap on the number of children you can claim for, but only one person can receive the benefit per child.

However, confusion over the High Income Child Benefit Charge means some families – particularly those with incomes approaching £80,000 – mistakenly believe they should not claim at all.

In reality, even higher earners can still register for Child Benefit and opt out of receiving payments while retaining valuable National Insurance credits.

Hidden pension boost many overlook

One of the biggest – and least understood – advantages of claiming Child Benefit is the impact on your future pension. Parents who claim automatically receive National Insurance credits while their child is under 12, helping to protect their entitlement to the State Pension.

This is particularly important for those who are not working or earning below the threshold for National Insurance contributions – meaning gaps in their record can be avoided.

Failing to claim could therefore leave some parents worse off in retirement.

How much you could get

Current weekly rates stand at:

• £26.05 for the eldest or only child
• £17.25 for each additional child

That equates to over £1,350 a year for one child, rising significantly for larger families. Payments are typically made every four weeks, although some parents – including single parents or those on certain benefits – can opt to be paid weekly.

Income rules explained

If either parent earns above the threshold, the High Income Child Benefit Charge may apply.

• The charge gradually increases once income exceeds the threshold
• At sufficiently higher incomes, the charge can equal the full amount of Child Benefit received

But even in these cases, claiming can still be worthwhile to secure National Insurance credits and ensure children automatically receive a National Insurance number before age 16.

HMRC’s message: don’t assume you’re not eligible. HMRC is urging parents not to rule themselves out – particularly those with incomes below £80,000 – and to check their eligibility via the HMRC app or online service.