HMRC warning as 1.5 million families risk losing £1,406 benefit payments

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Political commentator Olivia Dobbs slams Labour over the scrapping of the two-child benefit cap

Joe Sledge

By Joe Sledge


Published: 04/05/2026

- 13:02

Parents of teenagers urged to extend claims before August deadline to avoid payments stopping

Around 1.5 million UK households will receive letters from HM Revenue and Customs (HMRC) from 8 May, urging parents of teenagers to take action on their Child Benefit claims.

Families are being reminded they must extend their claim before August 31 or risk losing payments worth £1,406.60 a year.


The letters are being sent to parents of 16‑ to 19‑year‑olds, giving them several months to confirm their teenager’s education or training plans.

Payments will automatically stop if no action is taken.

Child Benefit normally ends on or after a child’s 16th birthday unless parents confirm their next steps.

Parents must renew their claim if their child continues in full‑time non‑advanced education or approved unpaid training after completing GCSEs or National 5s.

Those whose children are already enrolled in a course that HMRC has been notified about do not need to respond.

Child Benefit rates rose by 1.7 per cent on April 6.

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HMRC Child Benefit warning as families must act before August 31 deadline

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Parents now receive £27.05 a week for their eldest or only child, and £17.90 for each additional child.

This equates to £108.20 every four weeks for one child, or £1,406.60 a year.

Families with two children receive £2,337.40 annually.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said parents do not need to wait for a letter if their teenager already knows they are staying in education or training.

HMRC

Parents of teenagers urged to extend claims before August 31

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GETTY

Claims can be extended immediately via the HMRC app or the GOV.UK website, with letters including a QR code linking directly to the service.

Last year, 874,000 parents extended their Child Benefit claims, with more than half completing the process online or through the app.

The end of the two‑child cap marks one of the most significant welfare changes in nearly a decade, with charities saying it will lift thousands of children out of hardship.

Ministers argue the move will provide targeted support for working families, although some critics have questioned whether the funding could have been directed elsewhere.

The rise comes as millions of households face higher bills at the start of the financial year, from council tax to water charges.

Analysts say the increase in universal credit’s basic allowance will offer some relief, but warn that frozen income tax thresholds continue to pull more workers into higher bands.

Disability benefits have also risen by 3.8 per cent, while the state pension has increased by 4.8 per cent under the triple lock.

The Government says the combined measures form part of a wider package to help households manage rising living costs.