The Take Up Of Child Benefit

Child Benefit (ChB) take-up rates have fallen more sharply than expected since the pandemic began. By August 2021, the number of children under-one in families receiving ChB payments was 12% lower than the pre-pandemic level (February 2020). Claims have not returned to pre-pandemic levels.

A mixed-method approach research project is therefore needed to understand why some eligible parents are not applying for benefits to which they are entitled. This will enable targeted communications and help ensure HMRC is paying out right levels of support when the cost of living is increasing and supporting parents to access the non-monetary benefits associated with a ChB claim.

ChB is a relatively straightforward welfare product, providing support to those responsible for children up to the age of 16, or until 20 if they stay in approved education or training. Entitlement is irrespective of individual income, but if the claimant and/or their partner earns over £50,000 they will be in scope for the High-Income Child Benefit Charge (HICBC) unless they opt out of receiving payments. Child Benefit provides a valuable contribution towards the increasing cost of living, food, clothing and other expenses- particularly essential in recovery from the pandemic. External research indicates child poverty has increased throughout the pandemic and ChB is a key welfare product in tackling child poverty.

The research will support HMRC's objective to maximise support/welfare provided by ChB to families with children. By understanding barriers to claiming ChB we can better target our Comms to customer cohorts to improve ChB take up. Changes made as a result of the research have potential to promote ChB and improve customer journeys for the associated non-monetary benefits too.