Child Benefit is one of the UK’s most valuable yet overlooked financial supports for families. It is not means-tested, meaning it can be claimed regardless of your income level — although high earners may need to repay some or all of it through the High-Income Child Benefit Charge. This payment helps parents and guardians cover the costs of raising children, providing a regular cash boost alongside National Insurance (NI) credits that count towards your State Pension.
In 2025, HM Revenue and Customs (HMRC) revealed a concerning trend: more than 214,000 eligible parents are not claiming Child Benefit or are failing to renew it when needed. This figure has risen sharply compared to just a few years ago, suggesting many households are missing out on thousands of pounds in both immediate payments and future pension benefits.
The good news is that claiming Child Benefit is quick, free, and can be done online in just a few minutes. This guide explains why so many people miss out, how you can claim, and what you need to do to protect your long-term financial security.
The True Value of Child Benefit
Child Benefit currently pays £26.05 per week for the eldest or only child, which adds up to £1,354.60 a year. For each additional child, you get £17.45 per week, which is £907.40 annually. These payments are usually made every four weeks, directly into your bank account.
But the value of Child Benefit isn’t just in the cash payments. Claimants with children under the age of 12 automatically receive NI credits. These credits fill in any gaps in your National Insurance record, ensuring you stay on track to receive the full State Pension when you retire. Even one year of missed credits could reduce your pension by over £340 annually — every year for the rest of your life.
That means missing out on Child Benefit could cost you thousands of pounds over time, not just in lost payments now but in reduced retirement income later.
Why So Many Families Fail to Claim
Many families skip Child Benefit without realising the long-term cost. The most common reasons include:
- Lack of awareness: Some new parents, especially first-time parents, simply do not know they need to apply separately for Child Benefit. They may assume it is automatic after registering a birth.
- Fear of the High-Income Child Benefit Charge: Parents earning over £50,000 face a partial or full repayment through the HICBC. To avoid this, some households decide not to claim at all — but this also means losing out on valuable NI credits that could protect their pension.
- Confusion about eligibility: Families with teenagers in education or training sometimes mistakenly believe the benefit stops when their child turns 16. In reality, it can continue until the age of 20 if they remain in approved education or training, but only if you inform HMRC.
The Urgent Deadline for Parents of Teenagers
One of the biggest pitfalls is forgetting to renew Child Benefit when your child turns 16. Payments and NI credits do not automatically continue. You must confirm their education or training status with HMRC before 31 August each year to keep receiving the benefit.
If you miss this deadline, you lose the payments and the NI credits until your claim is updated — and there’s no backdating for NI credits.
Renewing is simple: you can do it online via the HMRC app or the GOV.UK website. It only takes a few minutes, but missing it could cost you more than £1,300 in the year ahead.
How Missing Out Affects Your Retirement
Failing to claim Child Benefit can impact you now and decades from now. Each year of NI credits lost can reduce your State Pension entitlement. Over the course of a working life, missing several years could leave you with a significantly smaller pension.
Women are particularly at risk, as they are more likely to take career breaks or work part-time while raising children. By not claiming, they miss out on the NI credits that would help close pension gaps.
How to Claim or Renew Child Benefit
Applying for or renewing Child Benefit is straightforward. Here’s what you need to do:
- Go to GOV.UK or use the HMRC app to submit a claim or update details.
- If your child is over 16 but still in education or training, confirm their status before 31 August 2025 to keep the benefit.
- Check your NI record using the Check State Pension Service to ensure your credits are recorded correctly.
- If you find missing years, you can request a correction by filling in form CF411 or CF411A.
- High earners can still claim but opt out of receiving the payments to avoid the tax charge, while still securing their NI credits.
Why Claiming Child Benefit Is Always Worth It
Even if you think you do not “need” the payments now, the long-term gain from NI credits makes it worth claiming. This is not just short-term financial help — it’s a pension protection strategy. Many families only realise the impact of missed NI credits years later when it is too late to fix.
By claiming, you ensure you are not leaving free money — and your future retirement income — on the table.
Frequently Asked Questions
Q: Can high earners still benefit from Child Benefit?
Yes. If your income exceeds £60,000, you will repay the full benefit via the HICBC, but you can still register for Child Benefit to receive NI credits that protect your State Pension.
Q: Can Child Benefit be backdated?
Yes, payments can usually be backdated for up to three months, but NI credits are not backdated beyond this.
Q: Do I have to repay Child Benefit if my income goes over the threshold?
If your or your partner’s income exceeds £50,000, you may need to repay some or all of the benefit through your tax return. However, this does not affect your entitlement to NI credits.
Q: Does Child Benefit stop automatically at 16?
Yes, unless you confirm that your child is staying in education or training. Without this confirmation, payments will stop.
Q: Is it worth claiming if I’m not working?
Absolutely. NI credits are vital if you are not paying NI contributions through employment, as they help protect your future State Pension.
