Child Benefit Rates Set to Rise in May 2025: Starting from 7 April 2025, UK families will see an increase in Child Benefit payments. This welcomed rise is part of the government’s broader effort to help families manage the rising cost of living. Whether you are a parent, guardian, or someone looking after a child, understanding these changes is vital for your financial planning. In this guide, we will break down the updated Child Benefit rates, who qualifies, how to claim, and important considerations like the High Income Child Benefit Charge (HICBC). Whether you’re new to Child Benefit or already claiming, this article will help you maximize the support available to you.
Child Benefit Rates Set to Rise in May 2025
The increase in Child Benefit rates from May 2025 offers meaningful financial support for UK families during challenging economic times. Understanding your eligibility, managing your claims correctly, and being aware of the High Income Child Benefit Charge are crucial steps to make the most of this important support. By claiming Child Benefit, even if you choose not to receive the payments, you protect your future State Pension rights and your child’s National Insurance record.
| Topic | Details |
|---|---|
| New Weekly Rates | £26.05 for the eldest or only child; £17.25 for each additional child |
| Annual Totals | £1,354.60 for one child; £2,251.60 for two children |
| Eligibility | Responsible for a child under 16, or under 20 if in approved education or training |
| Payment Schedule | Every 4 weeks (or weekly if eligible) |
| High Income Charge (HICBC) | Applies if income exceeds £60,000; full repayment if £80,000 or more |
| Claim Process | Apply online via HMRC Child Benefit portal |
| National Insurance Credits | Claiming Child Benefit gives NI credits towards State Pension |
| Backdating | Claims can be backdated up to 3 months |
| Official Resource | GOV.UK Child Benefit Information |
What’s Changing in May 2025?
From 7 April 2025, the Child Benefit rates are increasing to reflect inflation and better support households:
- Eldest or only child: £26.05 per week (up from £25.60)
- Each additional child: £17.25 per week (up from £16.95)
This represents an increase of approximately 1.7%, matching the Consumer Prices Index (CPI) inflation rate. Over a year, that’s an additional £23 for one child and £15.60 for each additional child, providing real relief for families.
According to the UK Government’s official website, these changes aim to ensure benefits remain meaningful in supporting families through ongoing financial pressures.
Who Is Eligible?
You are eligible for Child Benefit if you are responsible for a child who:
- Is under 16 years old, or
- Is under 20 years old if they are in approved education or training, such as A-levels or apprenticeships.
Important notes:
- Only one person can claim Child Benefit for a child, usually the primary caregiver.
- You don’t have to be the biological parent; guardians, grandparents, and others responsible for raising the child can also claim.
- If your child lives with someone else part-time, you must decide who will get the benefit.
Understanding the High Income Child Benefit Charge (HICBC)
The High Income Child Benefit Charge (HICBC) affects individuals whose income is above a certain threshold:
- Income between £60,000 and £80,000: You must pay back 1% of the Child Benefit for every £200 of income over £60,000.
- Income above £80,000: You will effectively repay the full amount of Child Benefit received.
For example:
- If your income is £65,000, you would repay 25% of your Child Benefit.
- If it’s £70,000, you would repay 50%.
You can either:
- Still receive the payments and pay the charge through your Self-Assessment tax return.
- Opt out of receiving the payments but still fill out the Child Benefit form to protect your National Insurance record.
Why You Should Always Consider Claiming?
Even if you opt out of receiving payments to avoid the tax charge, it’s crucial to fill out a Child Benefit claim form because:
- It secures National Insurance credits that count towards your State Pension.
- It helps your child receive a National Insurance number automatically just before they turn 16.
Not claiming could impact your future entitlement to the full State Pension.
How to Claim or Manage Child Benefit Rates Set to Rise in May 2025?
Making a New Claim
- Online: The easiest way is via the HMRC Child Benefit portal.
- By Post: Complete the CH2 form and send it to HMRC.
Make sure to have:
- Your child’s birth certificate
- Your National Insurance number
- Your bank details for payments
Managing an Existing Claim
If your circumstances change (for example, if your child leaves education), you must update your details via your HMRC online account or mobile app.
Claims can be backdated by up to three months if you miss applying immediately.
Payment Schedule: When and How You Get Paid
Typically, Child Benefit payments are made every four weeks on a Monday or Tuesday. However, you can request weekly payments if you are a single parent or receive certain means-tested benefits like Income Support.
Payment is made directly into your bank account.
You can check your Child Benefit payment dates using your HMRC online account.
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Frequently Asked Questions (FAQs)
Can I claim Child Benefit for more than one child?
Yes! You can claim for all your children. You’ll get the higher rate for your eldest (or only) child and the standard rate for each additional child.
What happens if my income is close to the £60,000 threshold?
If your income fluctuates around £60,000, it’s important to keep track. You may need to complete a Self-Assessment tax return at the end of the tax year even if you only go over the limit by a small amount.
How soon will I receive my first payment after claiming?
It typically takes up to 12 weeks to process a new claim. Backdated payments will be included in your first payment if applicable.
Do Child Benefit payments stop automatically?
No. Child Benefit usually continues until your child turns 16, or up to 20 if they stay in approved education or training. You must notify HMRC when your child leaves education to avoid overpayments.
Practical Example: Sarah’s Story
Sarah, a single mum earning £28,000 a year, has two children.
- For her eldest child, she receives £26.05 per week.
- For her younger child, she receives £17.25 per week.
Her total Child Benefit is £43.30 per week or approximately £2,251.60 per year. Since her income is well below the HICBC threshold, she keeps 100% of her Child Benefit. This extra income helps Sarah pay for her children’s school uniforms, sports fees, and weekly groceries.
