Starting in April 2025, families across the UK will see an increase in their Child Benefit payments, helping to ease the pressures of rising living costs. This is welcome news for many, as the government is implementing a 1.7% increase to the benefit amount. For families with children, this means more financial support to help cover the costs of raising a child. But how much more will families receive, and how will this change affect your household?
In this article, we’ll break down what the Child Benefit increase means, how much more you’ll receive, and how you can make sure you’re getting the most out of the benefit. We’ll also cover important details such as eligibility, the High-Income Child Benefit Charge (HICBC), and additional resources available to parents. Whether you’re a parent looking for an increase in your benefits or a professional advising others on this change, this guide is packed with useful information for everyone.
Child Benefit Increase Coming in April 2025
| Key Information | Details |
|---|---|
| Child Benefit Increase | Child Benefit will increase by 1.7% starting in April 2025. |
| Amount for First Child | £26.05 per week (up from £25.60). |
| Amount for Each Additional Child | £17.25 per week (up from £16.95). |
| Annual Benefit for One Child | Approximately £1,354.60 annually for a family with one child. |
| High Income Child Benefit Charge (HICBC) | A charge applies if household income exceeds £60,000, and may result in partial or full repayment of the benefit. |
| Eligibility for Child Benefit | Available to all families, but HICBC may affect higher earners. |
| Additional Support | Child Benefit also helps build National Insurance credits, which contribute toward State Pension eligibility. |
What Is Child Benefit?
Child Benefit is a financial support provided by the UK government to help parents or guardians cover the costs of raising children. It’s a regular payment available to families with children under the age of 16 (or under 20 if they’re still in approved education or training). The benefit is not means-tested, which means it’s available to all families, regardless of income, although higher earners may have to pay a charge.
The amount of Child Benefit a family receives depends on how many children are in the household. The more children you have, the more you receive.
How Much Will Families Receive After April 2025?
From April 7, 2025, families will see an increase in their weekly Child Benefit payments. Here’s how the new rates compare:
- First or only child: Families will receive £26.05 per week (an increase of 45 pence from the previous rate of £25.60).
- Additional children: For every additional child in the family, families will receive £17.25 per week (up from £16.95).
These amounts might not sound like a huge increase on a weekly basis, but over the course of a year, they can add up. For a family with one child, the annual total will increase to about £1,354.60, which is a significant contribution to the costs of raising a child.
Why is the Child Benefit Increasing?
The 1.7% increase is in line with inflation, helping families cope with rising living costs. This small but meaningful increase reflects the government’s commitment to providing support to parents, especially in challenging economic times. The adjustment is designed to offer parents some relief as the costs of everyday goods and services continue to rise.
How Does Child Benefit Work?
Child Benefit is a straightforward benefit to claim. It’s paid to the person responsible for the care of the child, usually the mother or father. The payment is made either every four weeks or, if requested, weekly. It’s a non-taxable benefit, so you don’t need to pay taxes on it.
To qualify for Child Benefit, the claimant must be responsible for a child who is:
- Under the age of 16, or
- Under 20 if they are in full-time education or approved training.
How to Apply for Child Benefit
Applying for Child Benefit is easy. You can do so online by visiting the official Child Benefit page on the UK Government website. Once you’ve applied, you’ll receive a National Insurance number and start receiving payments on the schedule you’ve chosen.
If you have a new baby, you can apply for Child Benefit as soon as they’re born, but you must apply within 3 months of the birth to ensure you receive the payments on time.
Who Can Claim Child Benefit?
Child Benefit is available to anyone who is responsible for a child, regardless of income. However, if you or your partner earn more than £50,000 per year, the amount of Child Benefit you receive may be reduced or eliminated through the High Income Child Benefit Charge (HICBC). This charge is a way for the government to reclaim some or all of the benefit from higher earners.
High Income Child Benefit Charge (HICBC)
The High Income Child Benefit Charge (HICBC) applies to individuals who earn between £50,000 and £60,000. For each £100 of income above £50,000, the charge will reduce your Child Benefit by 1%. For example:
- If one parent earns £60,000, they will have to repay 50% of the Child Benefit they receive.
- If one parent earns £70,000, they will repay 100% of the Child Benefit amount.
To calculate whether you’ll have to pay the HICBC, the government uses your adjusted net income—this is your total income after tax, pension contributions, and other allowable deductions.
For families earning more than £60,000, it’s crucial to carefully consider whether or not to claim Child Benefit. In some cases, the tax charge might make it more beneficial not to claim the benefit, though it’s still worth applying to receive National Insurance credits.
Child Benefit and National Insurance Contributions
One of the lesser-known benefits of claiming Child Benefit is that it provides National Insurance (NI) credits. These credits count towards your State Pension and could make a significant difference when you retire.
If you’re not earning enough to pay National Insurance, but you still claim Child Benefit, you will receive NI credits automatically. This can be particularly valuable for parents who stay at home to care for their children, as they might not otherwise accrue enough NI contributions to qualify for a full State Pension.
It’s important to note that you don’t need to actually receive the payments to get the NI credits. Simply applying for and registering Child Benefit will help build these contributions.
Impact of Child Benefit on Other Benefits
Child Benefit may affect your eligibility for other benefits, such as Universal Credit or Tax Credits. In most cases, the government doesn’t count Child Benefit as income when determining eligibility for these programs, but it’s always a good idea to check how the benefit impacts your specific situation.
If you’re receiving Universal Credit, for example, the amount of Child Benefit you receive will not be deducted from your payments. However, if you or your partner earn above a certain threshold, you may face the High Income Child Benefit Charge.
How Child Benefit Works for Separated or Divorced Parents
In cases where parents are separated or divorced, the question of who should claim Child Benefit can sometimes be unclear. Generally, the parent who is the primary carer for the child should make the claim. However, if the child spends equal time with both parents, it’s best to discuss between yourselves who will make the claim.
If the non-residential parent claims the benefit, they must inform the Child Benefit Office about the arrangement. This ensures both parents can stay informed about their eligibility for other benefits or National Insurance credits.
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FAQs About Child Benefit Increase Coming in April 2025
1. How do I claim Child Benefit?
You can claim Child Benefit online through the official UK Government website. The process is simple and can be done from the comfort of your home.
2. Will the increase affect all families equally?
Yes, the increase will apply to all families receiving Child Benefit. The amount you receive depends on how many children you have in your household.
3. Do I have to pay taxes on Child Benefit?
No, Child Benefit is not taxable, but the High Income Child Benefit Charge (HICBC) may apply to higher earners. If you or your partner earn over £50,000, the government may reduce or eliminate the benefit through this charge.
4. Can I stop receiving Child Benefit?
Yes, you can choose to stop receiving Child Benefit payments, but this may affect your National Insurance credits. If you’re uncertain about stopping the payments, you may still want to apply to keep your eligibility for these credits.
5. What happens if I don’t claim Child Benefit?
If you don’t claim Child Benefit, you won’t receive the financial support, and you won’t get the National Insurance credits that contribute to your State Pension. It’s always a good idea to apply, even if you don’t need the money right away.
