Starting in April 2025, families across the UK will see an increase in their Child Benefit payments. This update will provide slightly higher weekly payments for parents raising children, helping with the cost of living.
Here’s what you need to know about the new rates, eligibility, and other important details.
Rates
Families with children will receive higher weekly payments from the Department for Work and Pensions (DWP) starting in April 2025. The updated rates are as follows:
| Children | Current Weekly Rate | New Weekly Rate (April 2025) |
|---|---|---|
| First Child | £25.60 | £26.05 |
| Additional Children | £16.95 | £17.25 |
There is no limit to how many children can be claimed for under Child Benefit. However, other benefits, such as Universal Credit, have restrictions on claims for more than two children.
The Two-Child Cap
The two-child limit on benefits remains a topic of discussion in the government. Former Labour leader Jeremy Corbyn recently questioned Work and Pensions Minister Sir Stephen Timms on the future of this policy.
Sir Stephen acknowledged that the government is reviewing policies related to child poverty, stating that social security changes are being considered. However, no confirmation has been given about removing the two-child cap.
Payment Process
If you are already receiving Child Benefit, you don’t need to take any action. The new increased payment will automatically be deposited into your bank account.
However, if your details have changed—such as a new address or bank account—you must update them through the GOV.UK website.
For new parents, claims can be backdated by up to three months. This means if you recently had a baby, you can still receive Child Benefit for the past three months even if you apply late.
Who Can Claim?
You can claim Child Benefit if you are responsible for raising a child who is:
- Under 16 years old
- Under 20 years old and still in approved education or training
Only one person can receive Child Benefit for a child. If two parents or guardians apply, the benefit will go to the person the government determines is the main caregiver.
High-Income Child Benefit Charge
If you or your partner earns over a certain amount, you may have to pay the High-Income Child Benefit Charge.
- If your adjusted net income exceeds £50,000, you may have to repay some or all of your Child Benefit through a tax charge.
- If either parent earns £80,000 or more, the charge will cancel out the Child Benefit payments completely. However, it may still be worth claiming, as it can help with National Insurance credits.
To check how much you may owe, you can use the Child Benefit tax calculator on GOV.UK. The person with the highest income in the household is responsible for paying the charge, and a Self Assessment tax return must be filed each year to settle any payments.
National Insurance Credits
Claiming Child Benefit can also help you build your National Insurance record, which affects your State Pension in the future.
- If you are not working or do not earn enough to pay National Insurance contributions, claiming Child Benefit ensures you receive credits towards your pension.
- If you do not need the credits, you can transfer them to your partner or another family member who provides childcare. This can be done through Specified Adult Childcare credits.
These credits are important for parents who take time off work to raise children, as they help prevent gaps in pension contributions.
The new Child Benefit rates offer a small financial boost for families, though discussions around the two-child cap continue.
If you are eligible for Child Benefit, make sure your details are up to date and consider the tax implications if you earn over the income threshold. For more information, visit GOV.UK and use the available online tools to calculate any tax charges.
