Your state pension entitlement can be increased by claiming Child Benefit, which is worth hundreds of pounds annually
We examine who qualifies and how the money is obtained.
It is possible that you may be eligible for Child Benefit if you are responsible for raising a child under the age of sixteen or under the age of twenty who is still enrolled in authorized education or training.
With no cap on the number of children you can claim, this is a valuable payment worth up to 1,355 for your oldest child and 897 for any additional children (2025/26 rates).
Government data shows that 110.9 million children are supported by the more than 60.9 million families who receive Child Benefit. Because of this, it is among the most accessible types of benefits in the UK.
Alice Haine, a personal finance analyst at investment platform Bestinvest, stated that determining your eligibility for Child Benefit can significantly improve household finances.
"Parents can put the money into a Junior ISA to help save for things like a child's first car, future property deposit, or college expenses, or they can use it to pay for daily expenses.
Moreover, if your child is still under 12, claiming this benefit entitles you to National Insurance contributions (NICs), which go toward your state pension. This can be especially helpful if you have taken time off work to care for them.
Because child benefit is means tested, high earners begin to lose their benefits when their income (or their partner's income) surpasses £60,000. Once the 80,000 mark is reached, they completely lose it. The high income child benefit charge (HICBC) is what this is called.
Even if you exceed the threshold, it is still worthwhile to register for the benefit in order to guarantee that you receive the NICs. You can refuse or return any money you aren't entitled to in a number of ways.
By checking a box on the original application form, parents can choose not to receive the payment (while still receiving the valuable NIC) or they can pay the HICBC money back at the end of each tax year by filing a self-assessment tax return.
This summer, a new service that will enable parents to use their PAYE tax code to repay any excess child benefits will be introduced.
How much does Child Benefit cost?
Currently, your eldest or only child receives 26 points per week from Child Benefit, while additional children receive 17 points per week. For your eldest child, this translates to 1,354.60 annually, and for any other children, it equals 897. These rates apply to the tax year 2025 - 2026.
In accordance with inflation, payments rise annually. The increase, which takes place in April, is predicated on the inflation reading from September of last year. In 2025 - 2026, the most recent increase was 1.7 percent.
There are no restrictions on the number of children you can claim Child Benefit for, but only one person may do so for each child. It is not the same as the two-child benefit cap, which is a separate concept. This alludes to a government regulation that limits child tax credits and Universal Credit for households with more than two children.
Does Child Benefit mean testing take place?
Due to the means test, high earners begin to lose their child benefit once their income (or that of their spouse) surpasses £60,000. The term "high income child benefit charge" refers to this.
Each time your income exceeds the 60,000 threshold, you forfeit one percent of your Child Benefit. This implies that once your income reaches £80,000, you are no longer eligible for anything.
High earners' compensation is not automatically adjusted by HMRC. Instead, the full amount is given to you, and you must file a self-assessment tax return to return the excess.
The government's Child Benefit tax calculator can be used to determine your repayment obligations.
Because the charge is based on the income of each individual parent rather than the household income, critics have previously criticized the rules as being unjust.
Accordingly, a household with two parents earning 60,000 will be eligible for the full amount of Child Benefit, even though their total household income is higher (120,000), than a family with one parent earning 80,000 and the other earning nothing at all.
Parents can employ a few tactics to keep their Child Benefit payments. By increasing your pension contributions through a salary sacrifice plan, for instance, you may be able to get back below the threshold and keep the money.
The Child Benefit application process.
48 hours following the registration of your child's birth or after the child moves in with you, you are eligible to claim Child Benefit. The maximum backdating period is three months.
To submit a claim, you can use the government's online service. Your child's birth or adoption certificate, your bank account information, your N.I. number, and, if you have a partner, your partner's N.I. number are all required.
How is the payment of Child Benefit made?
Every four weeks on a Monday or Tuesday, Child Benefit is deposited into your account. The funds can only be deposited into one account.
You must determine whether it is better for you or the other parent to apply for Child Benefit since only one person is eligible. HMRC will make the decision for you if you are unable to agree.
Increasing your entitlement to a state pension.
If you file for Child Benefit and your child is under 12, you will automatically receive National Insurance credits. These go toward your eligibility for a state pension.
If you qualify for the new state pension, you must have NICs for at least 10 years in order to receive any state pension at all. You must have made contributions for 35 years in order to receive the full new state pension amount, which is currently 11,973 annually.
If you took time off work to care for young children, these credits help keep your record clean. They may also be useful if you don't make enough money to cover your National Insurance premiums, possibly as a result of working part-time and falling below the threshold.
Your family might be eligible for the support in place of you if you don't require the credits.
To transfer the credits, you can apply through your spouse, partner, or another family member who looks after your child. So-called specified adult childcare credits are what these are.
You might want to assign your NI entitlement, for instance, to a grandparent who helps with childcare duties. Only those who are younger than the state pension age are eligible to receive them.
"Specific adult childcare credit applications are increasing as more families realize that caring for grandchildren can increase their retirement income in addition to helping with childcare," said Jon Greer, head of retirement policy at wealth management company Quilter.
According to Quilter, the current value of each year of transferred credit is equivalent to 330 in additional state pension income (based on 2025/26 rates), which could add 6,600 over the course of a 20-year retirement.
The level of awareness is still low, though. Greer went on to say, "Many eligible grandparents could be missing out on thousands of pounds simply because they don't realize they qualify or how to apply."
If you relocate abroad, can you still receive Child Benefit?
If you move abroad, you probably won't be able to claim Child Benefit, though some nations have social security agreements with the UK that might allow you to do so.
If your trip overseas lasts longer than eight weeks, you should get in touch with the Child Benefit Office.
To prevent money from being lost due to fraud and mistakes, the government recently declared that it was cracking down on claims from parents who have relocated overseas in an attempt to save 350 million.
There have reportedly already been thousands of people removed from the system who left the UK but continued to receive Child Benefit.
How 16 to 19-year-olds can extend their Child Benefit claim.
Unless your child continues their education or training, Child Benefit will end when they turn sixteen. During your child's final year of education, you will receive a letter asking you to confirm their next steps.
Education must be full-time, with at least 12 hours per week of supervised study or work experience related to the course. Pre-apprenticeships, the majority of level three vocational qualifications, the International Baccalaureate, Scottish Highers, A-Levels, T-Levels, and other authorized training can all fall under this category.
Following your confirmation to HMRC that you are still eligible, your Child Benefit payments will continue. Parents can use the HMRC app or the internet to accomplish this quickly and simply. If you don't take action by August 31st, your payments will be automatically stopped.
The reminder letter contains a QR code that parents can scan to access the digital service directly.
"Child Benefit is an important source of income for your household, and teenagers can be expensive," stated Myrtle Lloyd, HMRC's chief customer officer.
"Don't miss out on anything your teen is doing in September as soon as you find out. You can make sure your payments continue by extending your claim in a matter of minutes via the HMRC app or online.
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