The Department for Work and Pensions (DWP) has confirmed the new Child Benefit rates set to take effect from April 2025.
Following debates in Parliament, families will see a slight increase in their weekly payments, providing extra financial support for parents across the UK.
New Child Benefit Rates from April 2025
Starting in April 2025, families will receive:
- £26.05 per week for the first or only child (up from £25.60)
- £17.25 per week for each additional child (up from £16.95)
This means that families with two children will now receive £43.30 per week, an increase from £42.55 per week. The payments will continue to be made directly into bank accounts, so existing claimants do not need to take any action.
Universal Credit & the Two-Child Limit
Unlike Child Benefit, which has no limit on the number of children you can claim for, Universal Credit has a two-child cap. This means families can only receive additional support for up to two children, unless exceptions apply.
Work and Pensions Minister Sir Stephen Timms recently addressed concerns about the two-child limit, stating that while social security changes are being considered, no decision has been made to remove the cap.
Who Can Claim Child Benefit?
You can claim Child Benefit if you are responsible for raising a child who is:
- Under 16
- Under 20 and in approved education or training
There are no restrictions based on income, but if you or your partner earn above a certain threshold, you may have to pay back some or all of the benefit through a tax charge.
High-Income Child Benefit Charge
If either you or your partner earns over £50,000 per year (after deductions), you may need to pay back part of your Child Benefit through the High-Income Child Benefit Charge.
- Earnings between £50,000 and £80,000 – You’ll repay a portion of the benefit.
- Earnings over £80,000 – You’ll repay the full amount.
To calculate how much you may need to pay, you can use the Child Benefit tax calculator on GOV.UK. The person with the higher income is responsible for paying the charge, and they will need to submit a Self-Assessment tax return each year.
Child Benefit & National Insurance Credits
Claiming Child Benefit comes with another major benefit: National Insurance credits.
- If you claim Child Benefit and your child is under 12 years old, you automatically receive National Insurance credits towards your State Pension.
- These credits protect your pension by ensuring there are no gaps in your National Insurance record, even if you don’t work or don’t earn enough to pay National Insurance.
If you don’t need these credits, you can transfer them to:
- Your spouse or partner
- A family member providing childcare (through Specified Adult Childcare Credits)
How to Claim Child Benefit
If you’re not already receiving Child Benefit, you can apply online at GOV.UK. If you’ve recently had a baby, you can backdate your claim for up to three months.
For changes in personal details, such as a new bank account or address, updates can also be made online.
