HM Revenue & Customs (HMRC) has revealed that more than 214,000 families could see their Child Benefits withheld in 2025, even though they technically qualify for it. This announcement has caused concern across the UK, especially during a cost-of-living crisis where every penny counts. Child Benefit is one of the most important sources of support for parents and guardians, and losing access to it could leave many households struggling.
This article explains why HMRC is withholding payments, who will be affected, what changes are coming in September 2025, and how families can protect their entitlement.
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Child Benefit 2025: Who Risks Losing Payments and Why
| Amount 2025 | £25.60 for eldest child, £16.95 for each additional child |
| Households Affected | Over 214,000 |
| Main Reasons | High Income Threshold, failure to register, HMRC backlogs |
| New Rules Start | September 2025 |
| Penalty | Withholding of payments, potential NI credit loss |
What Is Child Benefit?
Child Benefit is a regular government payment made to parents or guardians responsible for raising children. It helps with the everyday costs of food, clothing, and school-related expenses.
The weekly Child Benefit amounts for 2025 are:
- £25.60 for the eldest or only child.
- £16.95 paid weekly for every child after the first.
Over the course of a year, that adds up to more than £1,100 for one child and close to £1,800 for two children. For many families, this support is vital.
Why Are 214,000 Families Affected?
HMRC has linked the issue to several factors:
- High Income Thresholds – If one parent earns more than £60,000, families face the High Income Child Benefit Charge (HICBC). This means benefits may be reduced or clawed back through the tax system.
- Failure to Register – Many parents do not realise they must register for Child Benefit, even if they do not want the payments, to secure National Insurance (NI) credits for their child.
- HMRC Delays – Backlogs and stricter checks have slowed down applications, leaving many households stuck waiting for payments.
- Policy Changes – HMRC has chosen to withhold payments until families confirm details or provide additional documentation.
The Unseen Consequences for Families
The loss of Child Benefit affects families in two ways. First, the immediate financial blow can mean missing out on hundreds or even thousands of pounds a year. Second, parents who fail to register may lose NI credits, which could reduce their State Pension later in life.
For example, a family with two children could lose around £1,800 annually. In addition, if NI credits are missed, children may not have their record protected for future benefits.
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September 2025 Changes to the Rules
From September 2025, HMRC is rolling out new compliance measures:
- Automatic reviews for households flagged by the High Income Child Benefit Charge.
- Stricter digital checks to identify parents earning over the £60,000 threshold.
- Families who fail to confirm their details risk losing payments, even if they are otherwise eligible.
Which Families Face the Highest Risk?
The groups of families at greatest risk include:
- Households in which a single parent’s income goes above £60,000.
- Parents who fail to complete a Child Benefit registration.
- Families who opted out of payments but did not secure NI credits.
- Migrant families who have recently moved to the UK but not completed documentation.
How to Check If You’re Eligible
To protect your Child Benefit, parents should:
- Confirm income for the 2024–25 tax year.
- Register their child’s birth with HMRC.
- Make sure they have an active Child Benefit account.
- Review National Insurance contributions regularly.
Step-by-Step Guide to Claiming in 2025
- Apply online through HMRC’s portal.
- Provide proof of identity and a birth certificate for the child.
- Decide whether to receive payments or only register for NI credits.
- Keep all personal and income details updated to avoid penalties or repayment demands.
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Why Some Parents Opt Out of Payments
Higher-income parents often stop claiming Child Benefit to avoid the High Income Child Benefit Charge. However, opting out without registering can harm children’s entitlement to NI credits, which may affect their pension rights later.
Real-Life Example
Consider a family where one parent earns £61,000 and the other earns £30,000. Because one parent crosses the £60,000 threshold, HMRC demands repayment through the tax system. Frustrated, the parents stop claiming. Years later, they discover their child has missed NI credits a mistake that could reduce future benefits.
Political Debate Around Child Benefit
The withholding of Child Benefit has fuelled debate among MPs. Critics argue that:
- The High Income Child Benefit Charge places a heavier burden on families with one main earner than it does on those with two earners.
- Administrative backlogs at HMRC are punishing families needlessly.
- Cutting support during a cost-of-living crisis risks pushing more children into poverty.
Some lawmakers are now pressing the government to reform or scrap the charge altogether.
What to Do If Payments Are Withheld
Parents who find their Child Benefit withheld should:
- File an appeal through HMRC’s online system.
- Keep copies of all supporting documents.
- Contact their local MP if they believe the system is unfair.
- Seek advice from Citizens Advice or similar organisations.
Future Outlook
Experts believe that unless thresholds are raised or rules simplified, more families will lose access in the coming years. Some possible changes could include:
- Raising the income threshold to reflect wage growth.
- Automatically protecting NI credits, even if payments are withheld.
- Abolishing the High Income Child Benefit Charge entirely.
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FAQs For Over 214,000 Families Could Lose Child Benefit This Year
£25.60 for the first child and £16.95 for each additional child.
Because of income thresholds, failure to register, and delays in processing claims.
You could lose your child’s NI credits, which may affect their future pension entitlement.
Yes. Families can appeal online and submit documents to prove eligibility.
Households with one parent earning over £60,000, unregistered families, and new migrants without complete records.
The decision by HMRC to withhold Child Benefit from more than 214,000 households highlights how important it is for parents to stay on top of eligibility rules. Families must ensure their details are up to date, register even if they opt out of payments, and protect NI credits. While the government insists the policy is fair, critics believe reform is needed. For now, parents can best protect their entitlement by checking their accounts and acting quickly if payments stop.
