Families across the UK will see an increase in Child Benefit payments in 2025, with HMRC confirming new weekly rates.
This boost aims to help parents manage rising living costs while continuing to provide essential financial support for raising children.
This guide explains the new Child Benefit rates, eligibility, tax implications for high earners, and the National Insurance (NI) credit benefits linked to Child Benefit claims.
New Rates
From April 2025, families will receive the following increased Child Benefit payments:
| Children in Household | New Weekly Rate | Previous Rate | Annual Amount |
|---|---|---|---|
| First Child | £26.05 | £25.60 | £1,354.60 |
| Each Additional Child | £17.25 | £16.95 | £897.00 per child |
There is no limit on the number of children a family can claim for, meaning households with multiple children will see a noticeable increase in their total benefit.
Who Can Claim?
You can claim Child Benefit if you are responsible for bringing up a child who is:
- Under 16 years old
- Under 20 years old if they stay in approved education or training
Parents of newborns can backdate their Child Benefit claims by up to three months, ensuring they don’t miss out on payments.
High Income Child Benefit Charge
If you or your partner earn over £50,000 per year, you may have to repay some or all of your Child Benefit through the High Income Child Benefit Charge (HICBC).
How It Works:
- If your adjusted net income (after certain deductions) is over £50,000, you’ll need to repay 1% of your Child Benefit for every £100 earned above the threshold.
- If you earn £60,000, the charge cancels out the entire Child Benefit amount.
- If either parent earns £80,000 or more, the full amount is deducted, but you still receive National Insurance credits.
To check if you will need to repay Child Benefit, use the Child Benefit Tax Calculator on GOV.UK.
Who Pays the Charge?
- If both parents earn over £50,000, the partner with the higher income must pay the charge through Self Assessment.
- You must register for a Self Assessment tax return each year to declare the Child Benefit received.
Child Benefit and National Insurance Credits
One key benefit of claiming Child Benefit is automatic National Insurance (NI) credits. These credits count towards your State Pension, ensuring you don’t have gaps in your NI record if you:
- Are not working
- Earn less than the National Insurance contribution threshold
If you do not need the NI credits, you can transfer them to:
- Your spouse or partner, so they benefit from the State Pension protection
- A family member who provides childcare, through Specified Adult Childcare Credits
Important: Only one person can claim Child Benefit per child.
How to Update or Claim Child Benefit
Existing Claims
If you already receive Child Benefit, you don’t need to do anything—the increased payments will be automatically updated and continue being paid into your bank account.
However, if you need to update details (e.g., change of bank account or address), you can do so online at GOV.UK.
New Claims
If you are claiming Child Benefit for the first time, follow these steps:
- Apply online at GOV.UK or download the Child Benefit claim form (CH2).
- Provide your child’s birth certificate (if applicable).
- Choose whether to receive payments or opt-out (to avoid the HICBC).
- If opting out, ensure you still register for NI credits to protect your State Pension.
The 2025 Child Benefit increase provides much-needed financial support for families, ensuring parents receive higher payments for each child. While high earners may need to repay some or all of their benefit, the scheme still offers significant advantages, including National Insurance credits.
For the latest updates or to apply for Child Benefit, visit GOV.UK.
