Millions of UK families set for a Child Benefit boost from April 2025
Child Benefit Rates Get a Bumper Rise
Good news for UK families! From April 2025, Child Benefit payments will go up. The first child will see an increase to £26.05 per week, up from £25.60. Each extra child’s payment will rise to £17.25 per week, a jump from £16.95.
Unlike some other benefits, there’s no limit on how many children families can claim for. Around 7 million families currently receive Child Benefit for roughly 13 million children nationwide.
No Fuss – Payments Will Increase Automatically
If you’re already claiming, there’s nothing you need to do. The new rates will be paid automatically into your bank account.
New parents can apply and even backdate claims for up to three months. Any changes, like moving house or updating bank details, can be done easily online at GOV.UK.
Who’s Eligible for Child Benefit?
- Parents or guardians raising a child under 16
- Or children under 20 if in approved education or training
Beware the High-Income Child Benefit Charge
Top-earning families may face a tax charge if one parent earns over £60,000 in 2024-25 (down from a £50,000 threshold before). The charge hits hardest at incomes above £80,000, where the full Child Benefit could be clawed back via tax.
The charge is paid by the higher earner and increases with income. A handy Child Benefit tax calculator can help parents work out their liability.
National Insurance Credits and Child Benefit
Claiming Child Benefit also scores parents automatic National Insurance (NI) credits for children under 12. These boost your State Pension by filling NI gaps if you’re out of work or don’t earn enough to pay NI.
If you don’t need the credits, you can transfer them to your partner or another family member caring for your child.
How to Apply
Parents looking to apply or update details should head to GOV.UK or contact HMRC. High earners must file a Self Assessment tax return every year to settle any Child Benefit charge due.
With these higher payments, UK families will get a much-needed cash boost to help with the ever-rising cost of raising kids.
