CHILD'S PAY
Hundreds of thousands of parents could have child benefit STOPPED in days if they don’t take action now
We explain what you need to do to keep getting the benefit
PARENTS have less than two weeks to tell the taxman that their 16-19 year-old is continuing education or training, or their child benefit payments will stop.
Hundreds of thousands of teenagers will decide their futures this week as they receive their GCSE results on Thursday.
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Any parents of 16-19-olds who haven’t extended their claim, will have their child benefit payments cancelled after 31 August.
But if your child is going to continue in approved education or training, including doing A Levels or Scottish Highers, you can continue receiving the money.
The benefit is worth £25.60 for your eldest child, and £16.95 for any subsequent children. Over a year that adds up to £1,331.20 for the older child.
If your child has two further years of education, for instance if they’ve decided to do the International Baccalaureate or stay on for A Levels, that’s £2,662.40 in free cash that you could lose out on.
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HMRC is urging people to extend their claim now, to make sure they do not miss out.
It says it wrote to 1.5 million parents between May and July this year to remind them of the deadline and that more than 522,000 parents have extended their claim so far.
Victoria Benson, CEO of Gingerbread, the charity for single parent families, said: “It’s really important, with the 31 August deadline fast approaching, that parents whose children are going into further education and training extend their claim as soon as possible to avoid missing out on this crucial financial help.”
How to extend your child benefit claim
You can quickly and easily extend your child benefit claim online on GOV.UK or via the HMRC app.
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The taxman says that more than 270,000 parents have extended their claim digitally so far, with the changes applied to their record without the need to wait on the phone.
However, if your child is aged 18 to 20 and staying in approved education, you need to tell HMRC using the CH297 online form.
The taxman says that parents should keep their claim details up to date, even if they’ve opted not to receive Child Benefit payments due to the High Income Child Benefit Charge. This allows you to opt back into receiving payments online if your circumstances change.
Myrtle Lloyd, HMRC’s director general for customer services, said: “Child benefit is an important financial support for many households and we don’t want to see any eligible family miss out.”
When your child leaves approved education or training, payments will stop at the end of February, 31 May, 31 August or 30 November, whichever comes first. You should contact HMRC to let them know, or you could end up having to repay some benefit.
What counts as approved education?
Child Benefit is paid for children aged 16-20 who are studying full time in non-advanced education, which includes:
- A levels or Scottish Highers
- International Baccalaureate
- home education - if it started before their child turned 16, or after 16 if they have a statement of special educational needs and it was assessed by the local authority
- T levels
- NVQs, up to level 3.
Child Benefit will also continue for children studying on one of these unpaid approved training courses:
- in Wales: Foundation Apprenticeships, Traineeships or the Jobs Growth Wales+ scheme
- in Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success or Skills for Life and Work
- in Scotland: the No One Left Behind programme.
If a child changes their mind about further education or training, parents can simply inform HMRC online or via the HMRC app and payments will be adjusted accordingly.
You can check the status of your claim at any time by viewing your proof of entitlement in the app or online.
You will need a Government Gateway user ID and password to use HMRC’s online services. If you do not have one already, you can register on GOV.UK. All you need is your National Insurance number or postcode, and two forms of ID.
Who is eligible for child benefit?
You can get child benefit if you’re responsible for a child under 16 and you live in the UK.
You’ll continue getting the benefit for children aged between 16-20 as long as they stay in approved education or training.
You’ll usually be responsible for a child if either:
- you live with them
- you’re paying at least the same amount as Child Benefit (or the equivalent in kind) towards looking after them - for example on food, clothes or pocket money
Only one person can claim the benefit for each child. If you’re divorced, that means that only one parent will receive the money. However, if you have two children, you can choose to claim for one each.
If you earn over £60,000 or live with a partner who does, you’ll usually have to pay a High Income Benefit charge.
This is calculated as 1% of your child benefit payment for every £200 you earn over the threshold.
The calculation in done on your ‘adjusted net income’ which means the money you earn after paying things like pensions contributions.
If you earn slightly over the threshold, you can increase your retirement savings to put you back under the limit and continue to claim.
If you have to pay the charge, the money is paid back via the higher earner’s tax return at the end of the tax year. Once either you or your partner earns £80,000 you will have to repay all of the child benefit money.
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You can also opt out of getting the child benefits payments. You should still claim, particularly if you’re a stay-at-home parent with a high earning partner, because child benefit gets you NI Credits which count towards your state pension record.
There is an option to select on the form if you want to claim but don’t want to receive any of the payments, which allows you to get the NI credits without having to pay the benefit back through a tax return.
How to claim Child Benefit
Child benefit is worth up to £1,331 a year for your first or only child and up to £881 a year for additional children.
This works out at £102.40 every four weeks or £25.60 a week for your first child and £67.80 every 4 weeks or £16.95 a week for their siblings.
There is no limit on the number of children that can be claimed for.
Applying is straightforward and can be done in minutes at gov.uk or through the HMRC app.
Parents with a newborn baby should make a claim online as soon as possible and could then receive their first payment in as little as three days.
You can also backdate claims for up to three months.
Parents can make a claim and then choose to opt out of receiving Child Benefit payments can still receive National Insurance credits if one parent is not working.
National Insurance credits build up your entitlement to the state pension.