From the end of August 2025, HMRC (HM Revenue and Customs) has stopped certain benefit payments, leaving many households without any direct support from the tax authority in September. This change specifically impacts parents whose children turn 16 or complete their full-time education.
According to HMRC, Child Benefit automatically stops on August 31 following a child’s 16th birthday unless the child continues in approved education or training.
Child Benefit Rules After Age 16
- When it stops: Child Benefit ends on August 31 after your child’s 16th birthday if they leave school or training.
- When it continues: If the child stays in A-levels, T Levels, NVQ, or another recognised training programme, parents can continue receiving the benefit until the child turns 20 years old.
HMRC sends a letter during the final school year asking parents to confirm their child’s next steps. Failing to update HMRC could result in delayed payments, even if eligibility continues.
Impact on Universal Credit
Parents who receive Universal Credit (UC) will also see a reduction in payments once their child turns 16 or leaves education. This is because the child is no longer considered dependent under government benefit rules.
Universal Credit and Savings Rules: What You Need to Know
The Department for Work and Pensions (DWP) has also issued a reminder about how savings affect Universal Credit.
- Upper savings limit: If you hold over £16,000 in savings, you will no longer qualify for Universal Credit.
- Lower savings threshold: Once savings go above £6,000, your benefit amount starts to reduce. For every £250 above this limit, £4.35 is deducted from your UC payment.
- Example: If you have £6,400 in savings, you will lose £8.70 from your monthly benefit.
What Counts as Savings or Capital?
When calculating entitlement, the DWP considers more than just money in bank accounts. Savings can include:
- Cash and savings accounts
- Property you own but don’t live in
- Investments and stocks
- Cryptoassets
- Inheritance payments
- Money held in your name on behalf of someone else
However, personal possessions are excluded from these calculations.
The recent HMRC decision to halt Child Benefit payments at the end of August 2025 is a significant change for parents whose children are turning 16 or leaving full-time education. Families can still receive support if their children continue in approved education or training until the age of 20, but they must notify HMRC promptly to avoid disruptions.
Additionally, those receiving Universal Credit should carefully review their savings and capital, as having more than £6,000 can reduce payments, while anything above £16,000 makes households ineligible. Staying informed and updating details on time is key to avoiding missed or delayed payments.
FAQs
When will Child Benefit stop for my child?
Child Benefit ends on August 31 following your child’s 16th birthday if they leave full-time education or training.
Can I continue to claim Child Benefit if my child stays in school?
Yes. If your child continues with A Levels, T Levels, NVQ, or another approved training, you can claim until they turn 20.
How do savings affect Universal Credit?
If your savings are over £6,000, your UC payments reduce by £4.35 for every £250. With over £16,000, you won’t qualify.
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