Should you claim child benefit? What it's worth - and common traps trends now

Child benefit was once a simple univeral payment that went to all those with children but a shake-up by former George Osborne turned it into a complicated part of the tax system.

The good news is that the rules governing how child benefit is taken off higher-earning parents have been eased - and more can now get the payments of £25.60 per week for a first child and £16.95 for additional children.

We explain what you need to know about child benefit, whether you should take it - and why new parents must watch out for traps that can catch them out and lose state pension. 

Child benefit - what's it worth

Child benefit is currently £25.60 a week for the eldest and £16.95 a week for each additional child.

It is paid if you are responsible for a child who is under 16, or under 20 if they are still in school or on an approved training course.

Only one person can claim child benefit for any individual child, but there is no limit on the number of children for whom you can receive payments.

Controversial income thresholds that bar better off parents from getting child benefit were introduced in 2013, although these were recently eased and a further relaxation in the rules is due in 2026.

The changes more than a decade ago also caused problems because of a little-understood link between claiming child benefit and the state pension.

This has created holes in some parents' National Insurance records, but the Government has now promised to fix this issue too. 

Applying for child benefit

You can make a claim for child benefit or add another child to your claim at gov.uk, either online or by downloading and filling in a printed form.

Payments are made every four weeks on a Monday or Tuesday, but you can be paid weekly if you are a single parent or get other benefits, like Universal Credit.

You are expected to report anything that might affect affect your child benefit, such as household changes or if you move abroad.

If a family split ups, only one person still gets £25.60 a week for the eldest child, but if there are two children who live with different partners they will both get £25.60 a week. For other children, the amount stays at £16.95.

If you have a blended family, only the eldest child qualifies for the £25.60 rate and any other children the £16.95 rate.

Claiming child benefit for a child means they will automatically get a National Insurance number shortly before they turn 16.

Until a child is 12, the claimant can also receive free National Insurance credits towards their state pension - more on this below.

What are the child benefit rules for higher earners

In 2013, the High Income Child Benefit Charge was introduced, which effectively made better off parents ineligible for child benefit payments.

This removed child benefit if one parent earned between £50,000 and £60,000 via the high income child benefit charge, creating high marginal tax rates. Once earnings reached more than £60,000 child benefit was gone entirely.

After years of campaigning by parents and websites such as This is Money, the rules were changed in the Budget, but only to bump up the thresholds for removal to between £60,000 and £80,000.

Even if parents will lose child benefit, they should still apply, however, and either tick the relevant box to opt out of getting the payments, or take the money but the higher earner should fill in a tax return to have it clawed back.

This is because registering gets you credits towards the state pension if you need them, and your child will be in the system to receive their NI number.

Until recently, child benefit was reduced for those earning £50,000-plus a year, or wiped out entirely for those earning £60,000-plus.

But the rules were eased in April this year, and now child benefit starts to be phased out if one member of the household earns £60,000, and payments stop altogether at £80,000.

This means many more parents can now qualify for child benefit and some of those who are not taking it should start taking it again. 

However, if the £50,000 threshold had been hiked with inflation it would already be

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