Hundreds of households may receive compensation from HMRC due to a significant error related to Child Benefit. Approximately 500 families are believed to have missed out on entitled Child Benefit payments. If you were a parent of a child aged between 16 and 19 who pursued education or training outside traditional schools from April 2014 to August 2025, you might be owed money.
The rectification process is estimated to cost £1 million, with individual families potentially receiving up to £2,600 each. HMRC aims to finalize all payments by October 2026. Amendments to Child Benefit regulations effective from September 2025 will address the error by eliminating the requirement that education outside of a school or college must have commenced before the individual turned 16.
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“Full-time” education can also encompass fewer than 12 hours per week in cases where health or disability limits study time. An HMRC spokesperson stated that out of approximately seven million families receiving Child Benefit last year, only around 500 families over a decade may have been underpaid, and steps will be taken to assist them in claiming their rightful entitlements.
Child Benefit amounts to £26.05 weekly for the first child and £17.25 for subsequent children. Eligibility for Child Benefit extends to individuals responsible for children under 16 or under 20 engaged in approved education or training. Notification to HMRC and updating benefit claims are necessary if a child continues education or training beyond age 16.
Furthermore, informing HMRC of a child’s premature exit from approved education or training is essential. Child Benefit is applicable to various forms of education, excluding university degrees and BTEC qualifications. Paid every four weeks, Child Benefit is subject to income thresholds, with high earners potentially required to repay a portion based on income levels exceeding £60,000.
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