HMRC benefit claim all parents urged to make as ex-DWP worker issues advice

A former Department for Work and Pensions (DWP) employee, with 42 years of experience in dealing with State and benefits, has issued a warning to all parents. She emphasises the importance of claiming Child Benefit for everyone with a child, even if you're not eligible for the cash part from HM Revenue and Customs (HMRC).

Sandra Wrench, who spent her career navigating the intricacies of pensions and benefits, has outlined three reasons why parents should claim Child Benefit. These include securing National Insurance credits, ensuring your child gets their National Insurance number and enhancing your own State Pension.

In an interview with the Daily Record, the former specialist said: "With the introduction of the High Income Child Benefit Charge in January 2013, some parents whose earnings exceed the limit of £50-£60,000 have not bothered to submit a claim to Child Benefit after January 2013, as they are not entitled to the payment of Child Benefit. However, from April 2024 the earnings limit increased to £60,000 - £80,000."

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She further advised: "If your earnings exceed, it is essential that you still claim Child Benefit, but opt out of the payment. By opting out of the payment of Child Benefit, you do not then have any problem with HMRC chasing you for any overpayments. HMRC not only wants the Child Benefit repaid, but can also fine you."

She explained that by opting out of the payment, this saves you having to complete any Tax Self Assessment regarding child benefit.

For those who want to avoid the payment but still enjoy the associated benefits, Sandra highlights a straightforward option on the Child Benefit claim form – a box in section 4 that can be ticked to opt out, as reported by the Daily Record.

Sandra listed three main reasons for claiming Child Benefit, even if you decide to opt out of the payment.

National Insurance Credits

Firstly, National Insurance Credits. You're entitled to these credits until your child turns 12.

For each week you claim child benefit, you receive one credit. So, a full tax year of claiming equals 52 credits, which goes towards your State Pension.

National Insurance Number

Sandra said: "You need to make a claim to Child Benefit for your child to be automatically issued with a National Insurance Number (NINO) at age 16. If you do not register for Child Benefit, your child will not automatically receive a NINO at age 16, but will have to apply for a NINO.

"When you register a child with Child Benefit Centre, the child is allocated a NINO at that stage, which is then issued to the child at age 16."

Specified Adult Child Care Credits

If you go back to work while your child is still under 12, and you're paying NI contributions because of your job, you won't need the NI Child Benefit Credits. So, if a family member who's not yet at State Pension Age (SPA), like a grandparent, is caring for the child under 12 while you're at work, you can transfer the NI Child Benefit credits to them.

These credits can then be used by this other family member towards their own State Pension, if they've stopped working. These NI Credits are then referred to as Specified Adult Child Care Credits, and you apply for them through HMRC.

HMRC won't give the credits to this other family member without first confirming that the parent has a qualifying year from working. You can only apply for these credits if the parent has claimed child benefit.

More details on Specified Adult Child Care Credits can be found on GOV.UK..

Child Benefit Backdating

Child Benefit can only be backdated for three months, so you need to put in a claim to Child Benefit within three months of your child being born.

If a claim for Child Benefit is submitted late, it can only be backdated for three months, which means that NI Credits for Child Benefit can also only be backdated for three months.

Sandra highlighted how this has led to some women missing out on the NI Credits for Child Benefit, which contribute towards their State Pension. The UK Government reviewed this in April 2023, and NI Credits can now be backdated to the child's birth.

So, if you've missed these NI Credits, you'll be able to claim them from April 2026.

NINOs issued for 16 year olds and change of address

On the topic of National Insurance Numbers (NINOs) issued to 16 year olds and changes of address, Sandra advised: "Please ensure you notify HMRC/ Child Benefit of any change of address as the NINO will be sent to your 16 year old at your last known address,".

She added: "With parents opting out of the payment of Child Benefit due to the High Income CB Charge, it is essential that parents notify the Child Benefit Centre of any change of address, so the NINO for their child is sent to the correct address. If a parent is not in receipt of Child Benefit, it becomes easy for a change of address to be overlooked and not notified to the relevant department."

New Child Benefit Rates

New child benefit rates, they have been in effect since April 7, 2025, and are applicable until the child turns 16, or 20 if they continue in approved education or training.

Sandra warned: "Do not confuse the actual payment of Child Benefit with NI Credits for Child Benefit - the payment of Child Benefit you get for the child up to the age of 16, the CB NI Credits are only available until the child reaches the age of 12."

Full details on Child Benefit can be found on GOV.UK. The Child Benefit helpline number is 0300 200 3100.