The Department for Work and Pensions (DWP) has officially announced the updated Child Benefit rates for April 2025, providing financial relief to families across the UK.
These changes come as part of the government’s ongoing efforts to support families coping with increasing living costs.
The updated rates, which apply to both weekly and monthly payments, will benefit households with qualifying children under the age of 16 (or under 20 if in approved education or training).
Breakdown of the New Child Benefit Payments (April 2025)
The updated rates reflect a slight increase in the benefit amounts for both first children and additional children. Below is the comparison of the previous and new rates:
| Benefit Type | Previous Weekly Rate | New Weekly Rate | New Monthly Rate |
|---|---|---|---|
| First Child | £25.60 | £26.05 | £104.20 |
| Each Additional Child | £16.95 | £17.25 | £69.00 |
These modest increases are designed to provide families with a bit more financial support, especially those with multiple children, amidst the challenges of rising costs.
Unlimited Claims for Child Benefit
There is no cap on the number of children for whom a family can claim Child Benefit. This means that families can receive benefits for as many children as they qualify for, regardless of the number of children in the household.
However, it is important to note that other benefits, such as Universal Credit, impose a two-child limit. While families can claim Child Benefit for all their children, the two-child cap on Universal Credit restricts how much financial support families can receive for additional children.
The Two-Child Cap Debate
The two-child cap on Universal Credit remains a contentious issue. In early 2025, discussions in Parliament highlighted growing concerns about the policy’s impact on families, particularly as child poverty continues to rise. Despite calls for change, there has been no formal commitment to lift the cap yet, though it is under review.
Eligibility to Claim Child Benefit
To claim Child Benefit in April 2025, the following criteria must be met:
- Age Requirement: The child must be under 16 years old, or under 20 if they are in full-time education or training.
- Residency: The applicant must be a UK resident.
- Income Threshold: Families with higher incomes may face additional charges under the High-Income Child Benefit Charge (HICBC).
There is no limit to the number of children a family can claim for, as long as each child meets the eligibility criteria.
National Insurance Credits and Child Benefit
An often-overlooked benefit of receiving Child Benefit is the National Insurance credits it provides. Parents raising children under the age of 12, and not working or earning below the National Insurance threshold, can receive these credits.
This ensures their State Pension is protected. For parents working part-time or staying at home, this benefit is especially useful in safeguarding their future pension entitlements.
High-Income Child Benefit Charge (HICBC)
Families where either parent earns more than £60,000 per year will be subject to the High-Income Child Benefit Charge.
This charge can reduce or even eliminate the Child Benefit payments for higher earners. Key points about this charge include:
- It is based on adjusted net income, which includes salaries, dividends, rental income, and other earnings.
- Families with an income over £80,000 must repay the entire Child Benefit amount.
- Despite the charge, families are still entitled to claim Child Benefit and receive National Insurance credits.
- Affected families are required to complete a self-assessment tax return annually to determine their liability.
How to Check If You Are Liable for HICBC
Families can use the Child Benefit tax calculator on the official GOV.UK website to check if they are liable for the HICBC.
How to Update Your Information
For families already receiving Child Benefit, the updated rates will automatically be applied starting April 2025. There is no need to reapply for the benefit.
However, if there are any changes in your circumstances, such as a change of address or bank account, it is important to update your details via the GOV.UK portal promptly to avoid any delays in payments.
The updates to Child Benefit rates for April 2025 provide a much-needed increase in financial support for families.
While the changes are modest, they offer a step in the right direction as the government continues to address the challenges faced by families in the UK.
Families eligible for Child Benefit should ensure they keep their information up to date to avoid payment delays and take full advantage of the available support.
FAQs
Who is eligible to claim Child Benefit?
Eligibility for Child Benefit requires the child to be under 16 years old, or under 20 if in full-time education or training. Applicants must be UK residents.
What is the High-Income Child Benefit Charge?
The HICBC is a tax applied to families with incomes above £60,000 per year. If the income exceeds £80,000, the entire Child Benefit amount must be repaid.
Can I claim Child Benefit for multiple children?
Yes, there is no limit to the number of children you can claim Child Benefit for, as long as they meet the eligibility criteria.