Overview

• HMRC has started a correction exercise with local authorities and the Department for Work and Pensions to trace parents of 16–19-year-olds who missed out on child benefit since April 2014
• The agency plans to compensate roughly 500 households with up to £2,600 each to cover historical entitlement errors
• The compensation scheme carries an estimated £1 million price tag and aims to complete all payments by October 2026
• Regulatory amendments set for September will formally reverse the misapplication and protect future eligibility for young people in non-traditional education settings
• HMRC will deploy a stakeholder-led communications campaign to inform eligible families of how to claim their owed benefits