In a renewed effort to ensure UK households don’t miss out on essential financial help, HM Revenue and Customs (HMRC) is encouraging individuals earning less than £100,000 annually to explore a range of government-backed benefits and tax relief schemes.
These include Tax-Free Childcare, Child Benefit payments, and even backdated state pension top-ups for those affected by historical underpayments.
This push comes as many families continue to face the pressures of the cost of living crisis, and the government seeks to make support more accessible.
Tax-Free Childcare: Up to £2,000 per Child Annually
One of the most valuable schemes available is Tax-Free Childcare, which offers parents up to £2,000 per child annually—or £4,000 for a disabled child—to help cover the cost of approved childcare services. These include nurseries, childminders, after-school clubs, and holiday schemes.
To be eligible, parents must:
- Be in work (including self-employment),
- Earn at least £152 per week,
- And earn less than £100,000 per year (per parent).
The scheme operates via an online childcare account. For every £8 a parent pays in, the government adds £2. Funds can then be used to pay for registered childcare providers.
Child Benefit Payments: Recently Increased Rates
HMRC also reminded parents to apply for Child Benefit, especially following the recent rate increases which came into effect on April 7, 2025. Under the new rates:
- The eldest or only child is now entitled to £104.20 every four weeks (£1,354 per year),
- Each additional child is eligible for £69 every four weeks (£897 per year).
Child Benefit is not means-tested, but families where one parent earns between £60,000 and £80,000 may need to repay some or all of the benefit through the High Income Child Benefit Charge (HICBC).
Previously, many high-earning households opted out of Child Benefit entirely to avoid this charge. However, from summer 2025, affected families will be able to have the charge collected automatically through their tax code, allowing them to claim the benefit without upfront repayment.
Home Responsibilities Protection (HRP) and State Pension Underpayments
Another major issue HMRC is addressing is the historical underpayment of state pensions due to errors in the Home Responsibilities Protection (HRP) records. HRP was introduced in 1978 to protect the National Insurance contributions of parents—mostly mothers—who stayed home to care for children.
Due to system flaws, many eligible individuals didn’t receive the correct NI credits, which has affected their state pension entitlements.
HMRC and the Department for Work and Pensions (DWP) have identified thousands of people—many of whom are now pensioners or even deceased—who are due back payments. Some individuals have received compensation worth thousands of pounds.
Family members of deceased pensioners may also be eligible to claim on their behalf.
Why HMRC Is Taking Action
HMRC’s outreach campaign comes amid data showing that billions of pounds in government support go unclaimed each year. According to Turn2us, a trusted charity that helps people access benefits, many working families are unaware of their eligibility due to outdated assumptions about income limits or lack of awareness.
The Tax-Free Childcare scheme alone has seen low uptake, despite being widely available. Similarly, tens of thousands of parents haven’t applied for Child Benefit, missing out on both payments and National Insurance credits that count toward the state pension.
How to Get Help
Those unsure about their eligibility can use official benefit calculators such as:
- Turn2us Benefits Calculator
- Entitledto Calculator
HMRC also advises taxpayers to register for a personal tax account via www.gov.uk/personal-tax-account to manage claims, check NI records, and stay informed about benefit entitlements.
Final Thoughts
Whether you’re a new parent, a full-time carer, or someone approaching retirement, it’s worth checking if you’re leaving money on the table. With schemes like Tax-Free Childcare, Child Benefit, and pension top-ups available to most UK residents earning below £100,000, these benefits could provide crucial financial relief.
Make sure you claim what you’re entitled to—it’s your money, after all.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Himanshu Sharma writes for Weekend Spy, focusing on recruitment, government schemes, and current affairs. He is dedicated to making complex information accessible to readers.
Himanshu enjoys playing chess, hiking, and trying new recipes, always seeking ways to combine his love for writing with his passion for exploration. Connect with Drop him an email at [email protected].
