Starting April 2025, families in the UK will receive higher Child Benefit payments as part of the government’s effort to provide additional financial support.
This update includes increased weekly payments, eligibility criteria, income thresholds, and other important details.
If you’re a parent or guardian, here’s everything you need to know about the upcoming changes.
New Child Benefit Rates
From April 2025, the Department for Work and Pensions (DWP) will increase Child Benefit payments. The revised rates are as follows:
| Benefit | Previous Rate (Weekly) | New Rate (Weekly) |
|---|---|---|
| First child | £25.60 | £26.05 |
| Each additional child | £16.95 | £17.25 |
This increase will provide families with extra financial support to help manage living costs. While the rise may seem small, it contributes to overall household stability, especially for families with multiple children.
Claiming for Multiple Children
There is no limit to the number of children for whom parents can claim Child Benefit. However, families receiving Universal Credit should note that the two-child benefit cap still applies.
This means that, under Universal Credit, financial support is only available for the first two children unless special exemptions apply.
Two-Child Benefit Cap Debate
There has been ongoing debate about the two-child cap on benefits. Former Labour leader Jeremy Corbyn raised concerns about its impact on child poverty and asked whether the government plans to remove it.
In response, Work and Pensions Minister Sir Stephen Timms stated that the Child Poverty Taskforce is reviewing the issue, but no decisions have been made. The government will continue to assess its policy and determine the best course of action in future reports.
Who Can Claim Child Benefit?
Parents or guardians can claim Child Benefit if:
- Their child is under 16 years old.
- Their child is under 20 years old and still in approved education or training.
This means parents of teenagers in further education or apprenticeships may still qualify for Child Benefit payments.
Backdating Claims for Newborns
If you’ve recently had a baby, you can backdate your Child Benefit claim for up to three months. This ensures that you don’t miss out on payments for the first few months of your child’s life.
High Income Child Benefit Charge
Parents earning above a certain threshold may have to pay back some or all of their Child Benefit through the High Income Child Benefit Charge (HICBC).
How Does It Work?
- If either parent earns above the threshold, they must pay the charge.
- The individual with the higher adjusted net income is responsible for paying it.
- Use the Child Benefit tax calculator on GOV.UK to estimate how much you might need to pay.
Income Thresholds
| Annual Income | Impact on Child Benefit |
|---|---|
| Below £50,000 | No charge applies |
| £50,000 – £79,999 | Partial repayment required |
| £80,000 or more | Full repayment required |
If you or your partner earn £80,000 or more, you won’t receive extra money from Child Benefit because the charge equals the payment amount. However, you can still claim it for National Insurance credits (more on this below).
National Insurance Credits and Child Benefit
Claiming Child Benefit also provides National Insurance (NI) credits if your child is under 12. These credits help protect your State Pension by ensuring there are no gaps in your NI record.
Who Can Get NI Credits?
- Primary caregivers who don’t work or earn below the NI contribution threshold.
- If the primary caregiver doesn’t need the credits, they can be transferred to:
- A spouse or partner.
- A family member providing care under the Specified Adult Childcare Credit scheme.
This ensures that even if a parent takes time off work to care for their child, they won’t lose future pension benefits.
Updating Your Child Benefit Details
Parents who already receive Child Benefit don’t need to reapply for the increased payment. However, if any of the following details change, it’s important to update them online at GOV.UK:
- Bank account details.
- Home address.
- Family circumstances (e.g., separation or change in guardianship).
Keeping your information up to date ensures that payments continue without delays.
The increase in Child Benefit payments from April 2025 is a welcome change for many families. While the rise may not be significant, it still provides extra financial relief.
However, parents with higher incomes should be aware of the High Income Child Benefit Charge and how it affects their payments. Additionally, National Insurance credits remain a crucial benefit for parents who are not working.
For further details, managing claims, or updating personal information, visit GOV.UK.
