Guardian's Allowance and Child Benefit: Why You Must Claim Both

The Dependency Most Carers Miss

Guardian's Allowance cannot be awarded unless you have an active Child Benefit entitlement for the child. This is not a preference — it is a statutory requirement. If you do not already have Child Benefit entitlement, submit Form CH2 alongside BG1 so HMRC can consider both claims.

The problem is that many carers do not realise this. A grandparent takes in a bereaved child, hears about Guardian's Allowance, fills in BG1, posts it to Newcastle — and gets a refusal letter because they never claimed Child Benefit in their own name.

What Happens to Child Benefit When a Parent Dies

When a parent who was receiving Child Benefit dies, the existing award stops. It does not automatically transfer to whoever is now caring for the child. The new carer must submit a fresh Child Benefit claim using Form CH2 ("Claim Child Benefit"), available from GOV.UK or by phoning the Child Benefit Office.

If the other parent is also claiming Child Benefit and has not died, HMRC enforces statutory priority rules. Physical custody of the child takes legal precedence — the person the child lives with has the stronger claim. When a previous claimant's award is still live, HMRC applies a 3-week waiting period after notification before starting the new award.

Submit CH2 and BG1 Together

The simplest approach is to submit both forms at the same time. Post your completed BG1, your completed CH2, and all supporting documents (birth certificates, death certificates, exception evidence) in one package to the Guardian's Allowance Unit in Newcastle.

HMRC can process both claims in parallel. Doing it this way avoids the delay caused by sequential processing — where you wait for Child Benefit to be established before even starting the Guardian's Allowance claim.

The High Income Trap — and the Workaround

If your adjusted net income exceeds £60,000, you will face the High Income Child Benefit Charge (HICBC). Some carers in this position assume they should not bother claiming Child Benefit at all.

That would be a mistake. You can opt out of receiving Child Benefit payments to avoid the tax charge while keeping the underlying entitlement. Guardian's Allowance needs entitlement, not payments. And here is the key point: Guardian's Allowance itself is entirely exempt from HICBC. You receive the full £22.95 per week tax-free regardless of your income.

On Form CH2, tick the box that says you want to claim but not receive payments. This preserves your Child Benefit entitlement and unlocks Guardian's Allowance without triggering the tax charge.

Backdating Requires Separate Rules

Guardian's Allowance can be backdated up to three months from the date HMRC receives the completed BG1, provided you met the qualifying conditions throughout that period. Check HMRC's current Child Benefit guidance for its separate backdating rules; the Guardian's Allowance limit does not establish the Child Benefit award dates.

The Guardian's Allowance three-month limit is strict, with no discretion to extend it, even when the delay was caused by waiting for death certificates or dealing with grief.

Our Guardian's Allowance guide includes a claim synchronisation checklist that walks you through submitting CH2 and BG1 together, with a timeline for when each payment should start.

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