From April 7, 2025, families across the UK will experience an increase in their Child Benefit payments. This change is expected to offer some relief amid ongoing financial challenges.
According to the Manchester Evening News, the adjustments aim to support households by slightly raising the weekly benefit for the first child and subsequent children. The increase is part of broader government measures to ease the burden of living expenses for families.
What Is Changing?
Currently, Child Benefit stands at £25.60 per week for the first child, with a reduced rate of £16.95 for each subsequent child. From April 7, these rates will rise by 1.7%, marking a modest but significant increase in the government’s support for families.
- First child: £26.05 per week (up from £25.60)
- Each additional child: £17.25 per week (up from £16.95)
This means that families with multiple children will see an increase in their total annual payments, with the first child benefitting from an extra £1.05 weekly and each additional child receiving an extra £0.30.
For those with one child, the Child Benefit will amount to £1,354.60 annually after the increase. Families with more than one child will receive additional payments, with each subsequent child adding £897 annually to the household budget.
These payments are vital for millions of households across the UK, providing a consistent and reliable source of support for families raising children. It’s particularly important to note that claiming Child Benefit also accrues National Insurance credits, which contribute towards your state pension.
Eligibility and Qualifying Conditions
From April 7, 2025, Child Benefit payments will increase by 1.7%. The weekly payment for the first child will rise to £26.05, up from £25.60, while each additional child will receive £17.25 per week, an increase from £16.95.
This change means that families with one child will see their annual Child Benefit rise to £1,354.60, while families with more than one child will receive an additional £897 annually for each subsequent child.
These increases provide much-needed financial support, especially for families who rely on Child Benefit as a consistent source of income.
The High Income Child Benefit Charge
A significant aspect of Child Benefit is the High Income Child Benefit Charge (HICBC), which applies if either the claimant or their partner earns more than £60,000.
For every £200 earned above this threshold, 1% of the Child Benefit amount must be repaid. Once income exceeds £80,000, the full amount of Child Benefit is reclaimed, effectively canceling out the benefit.
In a move designed to streamline the repayment process, families now have the option to settle any due payments through their PAYE tax code, rather than waiting for an annual self-assessment.
This change, announced by Chancellor Rachel Reeves in the Spring Statement, offers more flexibility and convenience for higher earners managing their tax responsibilities.
Myrtle Lloyd’s Comments on Child Benefit
Myrtle Lloyd, HMRC Director General for Customer Services, highlighted the value of Child Benefit, saying :
Extra pounds count and Child Benefit can give your household budget a boost. Claiming online or managing your Child Benefit payments via the HMRC app is quick and easy so, if you haven’t already, go to GOV.UK to start your claim today.
This statement emphasizes how even small amounts of additional financial support can make a difference in the household budgets of millions of families. The process of claiming and managing payments has been made easier, allowing families to access these benefits quickly and conveniently.
Payment Schedule and Timing
Child Benefit payments are typically issued every four weeks. However, because the upcoming Easter bank holidays could affect the regular payment schedule, families expecting payments on April 21 will receive their Child Benefit on April 17, as a result of the Easter Monday bank holiday on April 21 and Good Friday on April 18.
It’s worth noting that the earlier payment will not change the total amount received; it merely shifts the date to ensure it arrives before the bank holidays. As such, families should budget accordingly, as this adjustment may lead to a longer gap before the next payment.
