Under the new rates, parents will receive £27.05 per week for their eldest or only child, equivalent to £1,406.60 a year. The increase is worth an extra £52 a year for the first child and £33.80 for each additional child. HM Revenue and Customs confirmed that more than 6.9 million families will see their Child Benefit payments increase from April 6 as part of annual uprating changes. Officials say the fastest way to apply for Child Benefit is via the HMRC app or online, with around 85% of claims now made digitally. Since the service launched, more than 1.5 million families have used it to submit applications, while hundreds of thousands more use it to manage their payments. Child Benefit is typically paid every four weeks directly into a bank account, and there is no limit to the number of children a family can claim for. Parents will need details including their child’s birth or adoption certificate, bank details and National Insurance numbers to complete a Child Benefit claim.
Only around 72% of families claim Child Benefit within their child’s first year, meaning many lose out on money they are entitled to. HMRC is urging new parents to act quickly, as claims can only be backdated for a maximum of three months. Child Benefit offers financial assistance to those with parenting responsibilities, National Insurance credits for people who might need to cut back on work hours owing to caring duties, and a National Insurance number for the child listed on the application.
Parents may still qualify for more than £100 each month even after their child surpasses the usual age threshold for Child Benefit. Unless parents inform HMRC that they remain eligible, Child Benefit payments will stop automatically when their child turns 16. HMRC has issued a reminder to parents with teenagers between 16 and 19 years old, urging them to check their entitlement as the benefit will terminate without intervention. Should parents notify HMRC that their child is embarking on approved training or continuing in full-time education, the payments and associated benefits can be extended until the child reaches 20. HMRC defines 'full time' education as more than an average of 12 hours per week of supervised study or course-related work experience. If your child has an illness or disability they may be able to complete fewer hours if that is more appropriate for them. Parents can inform authorities online if their child is continuing in approved education or training beyond the age of 16. Notifications for extending Child Benefit should generally be submitted before August 31 to avoid disruptions in payments.
Is your child aged 16–19 and staying in full-time education or approved training? You can keep getting Child Benefit until they turn 20!
Millions of UK households could reclaim as much as £2,000 from HM Revenue and Customs this year through Tax-Free Childcare, though the scheme carries a three-month warning. Tax-Free Childcare works by helping families cut expenditure on childcare costs for working parents. It is worth up to £2,000 per child annually, or up to £4,000 if your child is disabled. Upon registering for Tax-Free Childcare, the government will contribute £2 for every £8 you deposit into your online account. For parents of disabled children, the additional funds from Tax-Free Childcare can be used to pay for extra childcare hours and to assist providers in obtaining specialised equipment required by your child, such as mobility aids.
Your eligibility for Tax-Free Childcare depends on a number of factors, including your employment status, earnings, your child's age and circumstances, and your immigration status. According to HMRC, you can generally access Tax-Free Childcare if you're in employment, on sick or annual leave, or on shared parental, maternity, paternity or adoption leave, and you're returning to work within 31 days of the date you first applied. Even if you're not currently in employment, you may still qualify for Tax-Free Childcare if your partner is working and you receive Severe Disability Allowance, Incapacity Benefit, Carer's Allowance, Carer Support Payment (Scotland only) or contribution-based Employment and Support Allowance. Tax-Free Childcare is a UK-wide scheme covering England, Scotland, Wales and Northern Ireland. The scheme is open to all parents of children under 12, or under 17 if disabled. To apply, you must open a Tax-Free Childcare account online, and your childcare provider must be enrolled in the Tax-Free Childcare scheme for you to process payments and claim the top-ups.
To be eligible for the Tax-Free Childcare Scheme, you must be working, and if you have a partner they must work too, and you must not be receiving any support through Universal Credit. Usually both parents in a couple must work on an employed or self-employed basis and have an income of at least £2,643 each every three months. Recently self-employed people are allowed start-up periods where this income level doesn’t have to be met, or can use an average over the tax year. Periods on maternity leave, sick leave, paternity leave, parental leave, adoption leave and shared parental leave will count as being in work for any older children already enrolled in the scheme. Eligibility is limited to the last 31 days of leave where parents are claiming for a new child, whose birth or adoption led to the time off. It will run according to the school year – so that disabled children will be eligible until the September after their 16th birthday, while other children will be eligible until the September after their 11th birthday. Parents pay money into a childcare account, which the government tops-up by 25%, limited to £500 every 3 months, or £1,000 if your child is disabled.
Earning over £60k? Check if you need to pay the High Income Child Benefit Charge.
Regardless of your circumstances, if you wish to continue claiming Tax-Free Childcare, you must confirm your details are up to date with HMRC every three months. Failing to confirm details every three months will result in the government halting any payments into your Tax-Free Childcare account.
Parents earning more than £60,000 are being urged to check whether they need to repay Child Benefit – or risk an unexpected tax bill. HMRC has issued a reminder highlighting the High Income Child Benefit Charge, which applies when at least one person in a household crosses the earnings threshold. The threshold for the High Income Child Benefit Charge was increased from £50,000 to £60,000 from the 2024–25 tax year. Once income exceeds £60,000, some of the Child Benefit must be repaid; for example, someone earning £67,600 would repay 38% of their Child Benefit.
HMRC says the calculation for the High Income Child Benefit Charge is based on adjusted net income, which includes salary, savings interest, and dividends. This figure is worked out before personal allowances but after certain reliefs such as pension contributions and Gift Aid. There are two main ways to pay the High Income Child Benefit Charge: through Self Assessment or via PAYE, deducted automatically from salary. The PAYE option is now being promoted more heavily, allowing employees who do not normally file tax returns to avoid registering for Self Assessment. Once set up, HMRC adjusts your tax code and collects the High Income Child Benefit Charge automatically. PAYE can only be used if it is before January 31 following the relevant tax year. If you already file a tax return for other reasons, you must still use Self Assessment for the High Income Child Benefit Charge.
Families can now use a new digital service to settle the charge through their salary if they are not already in Self Assessment, describing the process as 'quick and easy with the HMRC app or online.'
Families can choose to stop receiving Child Benefit payments altogether to avoid the High Income Child Benefit Charge. Even if Child Benefit payments are stopped, it is still worth registering because it preserves National Insurance credits towards the State Pension and automatic allocation of a National Insurance number for the child at age 16.
The warning about the High Income Child Benefit Charge comes as many households drift into the higher income bracket due to pay rises, potentially triggering the charge without realising. HMRC is urging parents to check their position and use its online tools to avoid being caught out by the High Income Child Benefit Charge.
Additional support tools are also available through Money and Pensions Service, which offers a benefits calculator and budgeting guidance for new parents. If you are having difficulty with your Tax-Free Childcare account you can call the childcare service helpline. If you are due to start work or return to work you do not have to wait until you start work to apply for Tax-Free Childcare.
Conflicting information exists regarding key details of these benefits. Sources disagree on the exact new weekly rate for Child Benefit for the eldest or only child, citing either £27.05 or £26.05, and for additional children, citing £17.90 or £17.25. Similarly, the correct age limit for Tax-Free Childcare eligibility for non-disabled children is disputed, with some sources stating under 11 and others under 12, while for disabled children, limits vary between under 16 and under 17. It remains unknown how many families are currently affected by the High Income Child Benefit Charge and what the total amount being repaid annually is, highlighting gaps in publicly available data.