Families with a household income around £125,000 need to be aware of some changes to the criteria for receiving family allowance payments.
The limit for receiving the benefit used to be set at £120,000, but it has now been increased by £5,000.
The new maximum income level of £125,000 includes the income of the person receiving family allowance and any partner they are living with.
If a family’s gross annual household income for 2025 is expected to drop below £125,000, they should contact Employment & Social Security to discuss making a claim for family allowance as soon as possible.
Similarly, if a family’s gross annual household income for 2025 is expected to increase above £125,000, they should contact the Customer Hub to avoid overpayment of family allowance, which would have to be paid back at a later date.
Anyone affected by either scenario should email pensionsallowances@gov.gg or call 221000 to discuss their situation as soon as possible.
The way contribution credits are managed has also been updated.
Family allowance contribution credits – which apply if the person claiming family allowance isn’t liable to pay social security contributions through employment, self-employment or the level of their unearned income – will now only be awarded if the youngest child in a household is aged 11 or under.
Previously, the contribution credits were awarded if the youngest child was aged 15 and under.
A contribution protection scheme remains in place for parents who have a child aged between 12 and 15 if the parents meet the eligibility criteria.
Parents and carers in receipt of family allowance can find out more about the contribution protection scheme and apply by completing the online form at gov.gg/family-allowance-form.
Further information about family allowance can be found HERE.