New HMRC rule means parents could claim up to £2,214 - see if you are eligible

Father with young daughters looking over finances
-Credit: (Image: Getty)


A recent change in HMRC rules means that parents earning less than £60,000 annually can now claim up to £2,214 per year. This is due to an increase in the income threshold for Child Benefits payments eligibility, which has risen from £50,000 to £60,000.

As a result of this change, parents are being encouraged to check their eligibility to help with school-related expenses, rather than relying on high-interest credit. Research from financial institution Lowell revealed that 54 percent of UK parents depend on credit products to cover essential school costs, with 13 percent using payday loans and 15 percent resorting to buy-now-pay-later schemes for school expenses.

These loans can be particularly harmful against the backdrop of rising inflation, which saw a 2.2 percent increase in July of this year according to the Consumer Prices Index. John Pears, CEO of Lowell, commented to say: "While these credit solutions can offer short-term relief, worryingly, 69 per cent of those surveyed using credit products are concerned about the challenge of repaying them. For some, this could lead to longer-term financial difficulties, including a negative impact on their credit score, which could affect their ability to be approved for credit in the future."

Family looking over their finances
A recent change in HMRC rules means that parents earning less than £60,000 annually can now claim up to £2,214 per year -Credit:Getty

He added: "As 66 per cent of parents surveyed said they had not reached out for support or advice for back-to-school costs, we want to reassure parents that there are other, often more manageable ways to get support with these costs.

"For example, local authorities or the school directly can provide tailored advice based on your situation, such as uniform grants and subsidiaries towards laptops and tablets for families who require support."

He went on to say: "For many families across the UK, associated back-to-school costs such as uniforms can be difficult to afford, meaning many parents across the UK can find themselves worrying about their finances.

"Though credit can be a tool for helping to spread these costs, many credit products have high interest rates, and if unforeseen expenses occur, keeping up with credit repayments can become increasingly difficult.

"With this in mind, we wanted to provide parents with some insights and resources to help manage school expenses in the coming weeks. You can find a list of organisations ready to support you here."

Child Benefit payments are currently set at £25.60 per week for the eldest or only child, which could boost income by £1,333 over the year, and £16.95 per week for each additional child, potentially adding up to an extra £881 a year. These rates were implemented on April 6, 2024.

The benefit is available to those caring for children under 16, or under 20 if they are in approved education or training. Payments are usually made every four weeks, but single parents or those receiving certain benefits can opt for weekly payments. Eligible parents can apply for Child Benefit as soon as 48 hours after registering a birth or when a child comes to live with them. All children in Year 1 and Year 2 automatically qualify for free school meals.

For those in Year 3 and above, eligibility extends to families receiving Universal Credit or benefits such as Child Tax Credit, Income Support, or Income-Based Jobseeker's Allowance. Parents are encouraged to check their eligibility for these benefits, as they can significantly help in covering essential school costs.