In 2025, over 214,000 UK households are missing out on £1,354 per year in Child Benefit payments, according to recent figures from HMRC. This is a sharp increase of 66,000 unclaimed cases compared to just five years ago.
But what’s even more alarming is that missing this benefit could also cost families in the long term—impacting state pension entitlements.
Whether you’re a high-income earner or a stay-at-home parent, understanding your eligibility and how to claim this benefit can significantly boost your finances—both now and in retirement.
What Is Child Benefit?
Child Benefit is a non-means-tested payment available to anyone responsible for a child under the age of 16, or under 20 if the child remains in approved education or training.
It provides:
- £26.05 per week for the eldest or only child (£1,354 a year)
- £17.25 per week for each additional child (£897 a year)
Payments are made every four weeks directly into the claimant’s bank account.
Why Families Are Missing Out
Many families are failing to claim this benefit due to confusion around the High-Income Child Benefit Charge (HICBC). This tax charge applies when one parent earns over £60,000 per year.
- For every £200 earned above £60,000, 1% of the benefit is repaid through tax
- At £80,000 income, the entire benefit is clawed back
Because of this, many parents avoid claiming altogether. However, this leads to a bigger loss—National Insurance credits that count toward the state pension.
The Hidden Retirement Benefit
When a parent claims Child Benefit for a child under 12, they automatically receive National Insurance (NI) credits. These credits help build up the 35 qualifying years needed for the full state pension.
Here’s why this matters:
- Each year of NI credit boosts the future state pension by £6.58 per week, or £342.16 annually
- If a parent delays working until the child starts school at age 4, they could lose out on £1,368 per year in retirement income
Even if a high-income earner chooses to opt out of the payment, they can still register for Child Benefit to retain NI credits—a key step many overlook.
Who Should Claim?
You should consider claiming Child Benefit if:
- You are responsible for a child under 16 (or under 20 in training)
- Your income is under £60,000
- You or your partner is not currently employed, working part-time, or on a career break
Even high earners should register and opt out to secure pension benefits.
Quick Overview
| Criteria | Details |
|---|---|
| Weekly payment (eldest/only child) | £26.05 |
| Annual total (eldest/only child) | £1,354 |
| Weekly payment (additional child) | £17.25 |
| Annual total (additional child) | £897 |
| High-income threshold | £60,000 |
| Full repayment level | £80,000 |
| Pension boost per NI credit year | £342.16 |
| Total unclaimed cases (2025) | 214,000 |
| Increase since 5 years ago | 66,000 more cases |
How to Claim Child Benefit
- Register your child’s birth with your local council
- Visit the HMRC Child Benefit page
- Complete the CH2 form (can be downloaded or filled online)
- Submit the form by post or online
- Expect payments within 12 weeks
If you’re over the income threshold, register but opt out of payments to still receive National Insurance credits.
Why This Matters More Than Ever
With rising living costs, many families need every financial advantage they can get. Child Benefit is a key source of support that is being left on the table by over 214,000 families.
Worse still, the long-term financial impact of missing NI credits can cost parents thousands in state pension income—all for skipping a simple registration step.
Thousands of families across the UK are missing out on £1,354 a year by not claiming Child Benefit, and the consequences extend beyond just the loss of immediate cash. If you’re eligible, registering now—even if you’re a high earner—ensures you’re not sacrificing your state pension later.
This tax-free benefit is not only a financial booster today but a strategic move for your retirement. Don’t leave money on the table—check your eligibility, claim Child Benefit, and secure your future.
FAQs
Can high-income earners still get National Insurance credits?
Yes. You can register for Child Benefit and opt out of payments, still earning NI credits that count towards your state pension.
How many years of NI credits do I need for a full pension?
You need 35 years of qualifying National Insurance contributions or credits to receive the full UK State Pension.
What if my income varies? Should I still claim?
Yes. You can claim and repay any excess through self-assessment if needed. The future pension benefit often outweighs short-term repayments.