From April 2025, significant changes are coming to child benefits for over 16s in the UK. These changes will not only adjust the payment amounts but also refine eligibility criteria. It’s crucial for parents and guardians to comprehend these updates to avoid disruptions in benefits.
Key Changes in Child Benefit Payments
Starting in April 2025, parents will see an increase in child benefits. The payment for the eldest child will rise to £26.05, while payments for any additional children will be set at £17.25. However, parents must be mindful that these benefits will stop when a child turns 16. The exception to this rule is if the child continues in approved education or training.
Child benefits for over 16s remain an essential financial support system for families, yet it is vital that parents notify HMRC of their child’s educational status to ensure uninterrupted payments. If you do not confirm your child’s ongoing education by 31 August following their 16th birthday, HMRC will automatically suspend payments.
Prolonging Child Benefit Payments
Parents should note that under specific qualifying circumstances, child benefit payments can continue until a child reaches the age of 20. This extension applies if the child remains in approved education or training. The regulations specify that approved education must involve full-time study, comprising more than 12 hours each week of supervised study or course-related work experience.
What Constitutes Approved Education?
Education that qualifies for child benefits for over 16s includes various forms:
- A Levels and T Levels: These are traditional qualifications in England.
- Scottish Highers: The equivalent in Scotland.
- NVQs Up to Level 3: National Vocational Qualifications which focus on practical skills.
- Home Education: This must be appropriately documented if it began before age 16 or continued post-16 for individuals with special educational needs.
- Pre-Apprenticeships: These prepare students for future apprenticeship opportunities.
Most importantly, the course of study must commence before the child turns 19 to be eligible for continued benefits.
Ineligible Courses and Trainings
It’s essential for parents to understand that certain types of education or training disqualify a child from receiving benefits. If your child is:
- Studying for a degree or BTEC Higher National Certificate.
- Engaged in a job-related course with an employer’s agreement (unless it’s a foundation apprenticeship in Wales).
Therefore, any training or educational courses that are part of a job contract cannot be counted as approved education for the purposes of receiving child benefits.
Approved Training Options
For those living in Wales, there are several qualifying training options available, including foundation apprenticeships and traineeships, as well as the Jobs Growth Wales+ scheme. In Scotland, the “No One Left Behind” programme qualifies, and Northern Ireland offers the PEACEPLUS Youth Programme, Training for Success, or Skills for Life and Work initiatives.
Remember, perfect clarity on what is approved is vital; courses that involve paid employment or are part of a job contract are not eligible for the child benefit.
How to Confirm Educational Details with HMRC
Every year, HMRC will send a letter in your child’s last year at school requesting confirmation of their post-16 plans. To make this task easier, the letter includes a QR code that links directly to the gov.uk site, where parents can update their child benefit claims quickly online. This update can also be done conveniently through the HMRC app.
As parents, you have until 31 August 2025 to inform HMRC of your 16-year-old’s plan to continue their education or training if you want to continue receiving child benefits for over 16s.
Navigating the changes to child benefits for over 16s can be complex but necessary to maintain the financial support needed for a child’s education. With the payment increases set for April 2025, parents need to be attentive to deadlines and requirements to ensure continued financial support. Remember, confirming your child’s educational status by the stipulated deadlines is not just a formality but a crucial step in securing child benefits. Always check in with HMRC Simply Accounts Accountant Chester, Accountant Birkenhead, Accountant Leyland, Accountant Glossop, Accountant Wallasey for the most up-to-date information and guidance to maximise the financial assistance available for your family.