A former Department for Work and Pensions (DWP) employee has issued a strong call for all parents in the UK to claim Child Benefit—regardless of their income level. This advice follows significant updates to the High Income Child Benefit Charge (HICBC) which came into effect in April 2024, potentially allowing higher-earning families to benefit from the scheme once again.

What Is Child Benefit?

Child Benefit is a monthly payment made to eligible parents or guardians to help with the cost of raising children. The standard rate for the eldest or only child is currently £25.60 per week, and £16.95 for each additional child.

It’s a universal benefit, meaning everyone can apply—but those earning above a certain threshold may be liable for the High Income Child Benefit Charge.

What’s Changed in 2024?

From April 6, 2024, the government increased the HICBC threshold from £50,000 to £60,000. This means families with a parent earning up to £60,000 annually will now keep their full Child Benefit payments.

Additionally, the rate at which the benefit is reduced for those earning above the threshold has been made less aggressive. The taper rate has changed: instead of a 1% reduction for every £100 earned over £50,000, it’s now 1% for every £200 over £60,000.

As a result, Child Benefit is now completely withdrawn only when income reaches £80,000, instead of the previous £60,000 cut-off.

Why Parents Should Still Claim

Even if high earners might still have to pay back part or all of the benefit through HICBC, a former DWP employee argues it is still worth claiming for several key reasons:

1. National Insurance Credits

Claiming Child Benefit helps non-working parents or those on low income qualify for National Insurance (NI) credits. These credits count toward the State Pension, ensuring that periods spent caring for children do not leave parents at a financial disadvantage in retirement.

If a parent doesn’t claim Child Benefit, they could miss out on these valuable credits.

2. Automatic National Insurance Numbers for Children

Children whose parents claim Child Benefit are automatically issued a National Insurance number shortly before they turn 16. This helps streamline processes like opening a bank account, registering for work, or applying for student loans later in life.

3. You May Still Be Better Off Financially

Even if you earn between £60,000 and £80,000 and have to repay some or all of the benefit via HICBC, it may still be financially worthwhile to claim the benefit upfront and pay it back later through tax. For example, if your income is just above the threshold, your charge may be relatively small.

4. Reclaiming Child Benefit Is Simple

If you previously opted out of receiving Child Benefit due to the HICBC, you can reapply online via HMRC. Claims can be backdated by up to three months.

5. Easier HICBC Management

HMRC now allows those impacted by the HICBC to pay the charge directly through their PAYE tax code, eliminating the need for filing a Self Assessment tax return—making the process less burdensome.

Who’s Affected?

The change is expected to benefit nearly half a million families. Many middle-income earners who were previously discouraged from claiming the benefit due to tax penalties are now in a position to benefit once more.

The changes have also received praise from economic analysts who say the taper adjustments make the system fairer and reduce the so-called “Child Benefit cliff edge.”

Final Thoughts

This call to action by a former DWP insider is a timely reminder that claiming Child Benefit is more than just a monthly payout—it’s a pathway to securing long-term entitlements and easing administrative tasks for the future.

All eligible parents, even high earners, are encouraged to assess their situation and take advantage of the revised scheme.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.