Millions of families in the UK will see an increase in their Child Benefit payments starting next month, as HMRC confirms the new rates set to take effect in April 2025.
New Payment Rates
From April 2025, families will receive:
- £26.05 per week for their first child (an increase from £25.60 per week)
- £17.25 per week for each additional child (up from £16.95 per week)
Unlike some other benefits, there is no cap on the number of children a family can claim for. It is estimated that around 7 million families claim Child Benefit for approximately 13 million children across the UK, though figures fluctuate slightly each year.
Payment Adjustments and Claiming Process
Families with existing claims do not need to take any action, as the increased payments will be deposited automatically into their bank accounts.
New parents can also apply for Child Benefit and backdate their claims for up to three months. Those needing to update their details, such as a change in address or bank account, can do so online via GOV.UK.
Eligibility for Child Benefit
To qualify for Child Benefit, a parent or guardian must be responsible for raising a child who is:
- Under 16 years old
- Under 20 years old if they remain in approved education or training
High-Income Child Benefit Charge
Families with higher incomes may have to pay the High-Income Child Benefit Charge if either parent earns above the threshold:
- Over £60,000 for the tax year 2024 to 2025
- Over £50,000 for tax years up to 2023 to 2024
The charge increases with income and is paid by the partner earning the highest income. Those earning £80,000 or more will have the entire Child Benefit amount effectively reclaimed through taxation.
A Child Benefit tax calculator is available to help parents determine whether they will need to pay the charge and how much they may owe.
Child Benefit and National Insurance Credits
Claiming Child Benefit provides automatic National Insurance (NI) credits for parents of children under 12. These credits contribute towards a parent’s State Pension, preventing gaps in their NI record for those who:
- Are not working
- Do not earn enough to pay National Insurance contributions
If a parent does not need the NI credits, they can be transferred to a husband, wife, partner, or another family member who provides childcare.
How to Apply
Parents who need to apply for Child Benefit or update their details can do so through GOV.UK or by contacting HMRC. For those earning above the income threshold, completing a Self Assessment tax return each year is required to account for any tax charge owed.
With these new rates, families across the UK will receive additional financial support to help with the cost of raising children.
