Thousands of UK households may be due unpaid money from Child Tax Credit (CTC) as HMRC issues an urgent alert.
Following the recent closure of the tax credit system and its full transition to Universal Credit, a review by HMRC has revealed that some claimants were underpaid or missed out on additional elements they were entitled to. If you previously claimed CTC, this could be your opportunity to recover money owed.
Why Are People Owed Money?
The Child Tax Credit scheme officially ended in April 2025. All eligible recipients were either moved to Universal Credit or Pension Credit, depending on their household status.
However, during this transition and through historical reviews, HMRC identified that several claimants were underpaid, particularly due to one or more of the following reasons:
- Incorrect income reporting
- Omissions in the disability element
- Administrative delays or miscalculations
- Unrecorded changes in household status
Who Could Be Affected?
Anyone who claimed Child Tax Credit between 2018 and 2025 may potentially be owed money. Special attention is being paid to cases where families:
- Had children with disabilities or severe disabilities
- Failed to report income changes accurately
- Had unprocessed claims or incorrect adjustments during annual reviews
- Did not receive the disability addition, despite eligibility
How Much Could You Be Owed?
The actual amount owed varies depending on the claim duration, household size, and child disability status. Below is a table that outlines how much could be owed based on missed elements:
| Missed Benefit Element | Weekly Amount | Annual Total |
|---|---|---|
| Basic CTC for First Child | £65.94 | £3,428.88 |
| Additional Child Element | £54.60 | £2,839.20 per child |
| Disability Element | £74.69 | £3,883.88 |
| Severe Disability Addition | £30.17 | £1,568.84 |
These figures are based on current rates and could represent a substantial underpayment over multiple years.
What to Do If You Think You’re Owed
If you suspect that your CTC payments were incorrect or incomplete, here are the steps to follow:
- Check Your Annual Review Notice: HMRC sent out letters summarizing your past tax credit awards. Review it carefully.
- Identify Errors or Missing Elements: Look for any missing disability elements, incorrect household size, or reported income discrepancies.
- Contact HMRC Immediately: Use your National Insurance number and relevant documents to initiate a correction process.
- Respond Within Deadline: Most claim corrections must be made within 30 days of receiving HMRC’s letter. Final updates to income must be reported by 31 October 2025.
With thousands potentially owed hundreds or even thousands of pounds, it is crucial for past Child Tax Credit claimants to double-check their records. The HMRC alert is a timely reminder that overlooked details, such as a missed disability element or income update, could result in significant unpaid benefits.
If you were a claimant any time between 2018 and 2025, take action now to recover what you’re rightfully owed before the deadlines pass.
FAQs
How will I know if I am owed Child Tax Credit payments?
If you previously received CTC, check your annual statements from HMRC or any recent letters. If any elements were missed, especially disability-related, you may be entitled to a payout.
Can I still get paid if I missed the disability addition?
Yes, if your child qualified for disability-related benefits and this wasn’t reflected in your CTC, you could receive a back payment. Ensure you provide documentation to HMRC when requested.
What if I’ve already moved to Universal Credit?
You can still receive arrears from past CTC claims even if you’re now on Universal Credit, as the underpayment relates to your previous entitlement.