Hundreds of households might be eligible for compensations from HMRC due to a significant mistake concerning Child Benefit. Approximately 500 families are believed to have missed out on Child Benefit payments they should have received. If you were a parent of a child aged 16 to 19 who pursued education or training outside traditional schools from April 2014 to August 2025, you may be owed money.
The rectification process is projected to cost £1 million, with potential individual payouts of £2,600. HMRC aims to complete all payments by October 2026. Changes to Child Benefit regulations will come into effect from September 2025 to rectify the error by removing the condition that education outside standard schooling must have commenced before the person turned 16.
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“Full-time” education can also encompass less than 12 hours per week in cases where a person’s maximum study time is limited by illness or disability. An HMRC representative mentioned that out of approximately seven million families receiving child benefit last year, an estimated 500 families over ten years may not have received their correct entitlement. Details on how these families can claim their benefits will be shared soon.
Child Benefit amounts to £26.05 weekly for the first child and £17.25 for each additional child. Eligibility for Child Benefit includes being responsible for a child under 16 or under 20 if they are engaged in approved education or training. If the child continues education or training beyond age 16, it is crucial to update your benefit claim with HMRC, as Child Benefit ceases automatically on or after the child’s 16th birthday.
Moreover, informing HMRC is necessary if the child discontinues approved education or training prematurely. While approved education or training can encompass various programs such as A-Levels and NVQs, it excludes university or BTEC qualifications. Child Benefit is claimed by over seven million families and is disbursed every four weeks by HMRC on Mondays or Tuesdays.
Additionally, households with high incomes might be required to reimburse a portion of their Child Benefit. If either you or your partner earns above £60,000, repayment of 1% of Child Benefit for every £200 over the income threshold is mandatory.
