DWP Child Benefit alert as ex-DWP employee urges all parents to claim

A former Department for Work and Pensions (DWP) staffer with 42 years of experience in handling State Pensions and benefits has issued an alert to all parents. She says it is vital for everyone with a child to claim Child Benefit, even if you're not eligible for the cash part from HM Revenue and Customs (HMRC).

Sandra Wrench, who dedicated her career to navigating the complexities of pensions and benefits, has laid out three compelling reasons why parents should stake their claim on Child Benefit. These include securing National Insurance credits, ensuring your child receives their National Insurance number, and boosting your own State Pension.

Speaking to the Daily Record, the ex-DWP expert revealed: "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."

She went on to advise: "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 added: "By opting out of the payment, this saves you having to complete any Tax Self Assessment, as regards child benefit."

For those looking to sidestep the payment while still reaping the associated benefits, Sandra points out that there's a simple option available right on the Child Benefit claim form – a box in section 4 that you can tick to opt out, reports the Daily Record.

Sandra outlined three key reasons for claiming Child Benefit, even if you choose to opt out of the payment.

Firstly, National Insurance Credits. You are entitled to these credits until your child reaches 12 years of age.

For each week you claim child benefit, you receive one credit. Therefore, a full tax year of claiming equates to 52 credits, which contributes towards your State Pension.

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."

If you return to work when your child is still under 12, and you pay NI contributions because you are working, you do not need the NI Child Benefit Credits. So if a family member, under State Pension Age (SPA), such as a grandmother or grandfather, is looking after the child under 12 while the parent is at work, the parent can pass the NI Child Benefit credits to that other family member.

The credits can then be used by this other family member towards their own State Pension, if they have given up work.These NI Credits are then known as Specified Adult Child Care Credits, and you apply for them through HMRC.

HMRC will not award the credits to this other family member without first checking that the parent has a qualifying year from working.You can only apply for these credits if the parent has claimed child benefit.More information on Specified Adult Child Care Credits can be found on GOV.UK.

Child Benefit can only be backdated three months, so you need to submit a claim to Child Benefit within three months of the birth of your child.

NI Credits for Child Benefit

If a claim for Child Benefit is made late, the claim can only be backdated three months, which means that NI Credits for Child Benefit can only be backdated three months as well.

Sandra explained how this has resulted in some women losing out on the NI Credits for Child Benefit which would count towards their State Pension. This was reviewed by the UK Government in April 2023, and NI Credits can now be backdated to the birth of the child, so if you have missed out on these NI Credits, you will be able to claim these credits from April 2026.

"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," Sandra said.

"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."

The new Child Benefit rates have been in effect since April 7, 2025, and are available until the child turns 16, or 20 if they remain 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."

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