In a move set to benefit millions of families across the UK, Her Majesty’s Revenue and Customs (HMRC) will increase Child Benefit payments starting April 2025. This annual adjustment, linked to the Consumer Price Index (CPI), aims to help parents keep up with the rising cost of living.
The 1.7% increase means eligible families will see a modest rise in their monthly income, providing extra support during a time when household budgets are under pressure due to inflation, food costs, and energy prices.
What Is Child Benefit?
Child Benefit is a tax-free payment provided to parents or guardians responsible for raising children. The payments are issued by HMRC and are available to most families, regardless of employment status.
As long as your child is under the age of 16—or under 20 if they remain in full-time education or approved training—you can claim Child Benefit. However, only one person can receive the payment per child.
For more details on eligibility, visit the official government page here: Child Benefit – GOV.UK.
New Rates from April 2025
Effective from April 6, 2025, Child Benefit payments will increase as follows:
- Eldest or only child:
Increasing from £25.60 to £26.05 per week
→ That’s £104.20 every four weeks - Each additional child:
Increasing from £16.95 to £17.25 per week
→ That’s £69.00 every four weeks
These payments are typically made every four weeks, although single parents or those receiving certain benefits may request weekly payments.
This increase aligns with the 1.7% CPI inflation rate and reflects the government’s ongoing effort to ensure social security payments remain relevant in today’s economic climate.
For more info on payment rates, see: What you’ll get – GOV.UK.
How to Claim Child Benefit?
New parents, or those who have not yet registered for Child Benefit, are encouraged to apply as soon as possible after a child’s birth or guardianship begins.
To apply:
- Complete the Child Benefit claim form CH2, available on the HMRC website.
- Send it to the Child Benefit Office along with your child’s original birth certificate (which will be returned).
You can find all application steps here: How to claim – GOV.UK.
Important Note:
You can backdate a claim for up to 3 months, so don’t delay if you’re eligible.
High-Income Child Benefit Charge (HICBC)
While most families will receive the full amount, there’s a key catch for higher earners. If you or your partner earns more than £60,000 per year, you may have to pay some or all of the Child Benefit back via the High-Income Child Benefit Charge.
This charge is applied gradually between £60,000 and £80,000. Once earnings hit £80,000, the benefit must be fully repaid through the tax system.
You can use HMRC’s online calculator to check how much you might need to repay:
Child Benefit tax calculator – GOV.UK
Families affected by HICBC can still choose to receive Child Benefit and pay the charge, or they can opt out of receiving payments altogether to avoid it. However, claiming Child Benefit even without receiving payments still helps you qualify for National Insurance credits, which count toward your State Pension.
Why This Matters?
The modest rise may not seem life-changing, but for many families—especially those with multiple children or single incomes—it adds up over time. In the context of broader welfare increases for 2025, including Universal Credit and Tax Credits, this adjustment helps protect vulnerable families from the full force of inflation.
The government’s move comes as part of a wider package of benefit increases scheduled for April 2025. This includes rises in Tax Credits, Disability Living Allowance, and Universal Credit, all in line with inflation.
Final Thoughts
Child Benefit continues to play a vital role in supporting parents across the UK. While the April 2025 increase is relatively modest, it reflects a commitment to helping families navigate a challenging financial landscape. For households feeling the strain of rising costs, every bit of extra support matters.
Families are encouraged to check their eligibility, understand how the High-Income Charge might affect them, and apply if they haven’t already. It’s also a good time to review your broader benefits situation, especially if your income or family size has changed recently.
Vikas is a seasoned finance writer with a keen eye for unraveling complex global financial systems. From government benefits to energy rebates and recruitment trends, he empowers readers with actionable insights and clarity. When he’s not crafting impactful articles, you can find him sharing her expertise on Social Media. You can connect with him via email at [email protected].
