Child Benefit Rates from April 2025: Everything You Need to Know

Effective from April 2025, the UK government has announced revised rates for Child Benefit, reflecting a 1.7% increase in line with the Consumer Prices Index (CPI) as of September 2024. This adjustment aims to provide enhanced financial support to families raising children.

Updated Child Benefit Rates

The new weekly Child Benefit rates are as follows:

Child	Previous Rate (2024-2025)	New Rate (2025-2026)
Eldest or Only Child	£25.60	£26.05
Each Additional Child	£16.95	£17.25

These adjustments translate to an annual increase of £23.40 for the eldest or only child and £15.60 for each subsequent child.

Eligibility Criteria for Child Benefit

Child Benefit is available to individuals responsible for raising a child who meets one of the following conditions:

• Under 16 years old
• Under 20 years old, if they are enrolled in approved education or training programs

It’s important to note that there is no cap on the number of children for whom you can claim Child Benefit.

High Income Child Benefit Charge (HICBC)

Families with higher incomes should be aware of the High Income Child Benefit Charge (HICBC), a tax designed to recoup Child Benefit from households where the income of one partner exceeds a certain threshold.

Income Thresholds and Charges:

• Income Between £60,000 and £80,000: For incomes above £60,000, Child Benefit is effectively withdrawn at a rate of 1% for each £200 earned over £60,000. Therefore, the benefit is fully withdrawn where income of the higher-income partner reaches £80,000.

Calculating Adjusted Net Income:

Adjusted net income includes your total taxable income before personal allowances, minus certain deductions such as:

• Gift Aid donations
• Pension contributions
• Trading losses

To determine your liability for the HICBC, you can use the Child Benefit tax calculator available on the GOV.UK website.

Filing a Self Assessment Tax Return:

If your income exceeds the £60,000 threshold, you are required to file a Self Assessment tax return annually to account for the HICBC.

National Insurance Credits and Child Benefit

Claiming Child Benefit automatically provides National Insurance credits if your child is under 12 years old. These credits contribute to your State Pension by filling gaps in your National Insurance record, which is particularly beneficial if you are:

• Not employed
• Earning below the threshold for National Insurance contributions

If you do not require these credits, they can be transferred to your spouse, partner, or another family member who is caring for your child.

Impact of the Two-Child Limit on Other Benefits

While Child Benefit itself has no cap on the number of children you can claim for, other benefits, such as Universal Credit, are subject to a two-child limit. This policy restricts additional financial support for third or subsequent children born after April 6, 2017. However, recent discussions indicate that the government is considering exemptions to this rule, particularly for parents with children under five, to address child poverty concerns.

Application Process and Backdating Claims

To apply for Child Benefit, you need to complete the CH2 form, available on the GOV.UK website. You can backdate your claim by up to three months, ensuring you don’t miss out on any entitlements.

Required Information:

• Your National Insurance number
• Your child’s birth or adoption certificate
• Bank account details for payment

Managing Changes in Circumstances

It’s crucial to inform the Child Benefit Office of any changes that could affect your eligibility or payment amounts, such as:

• Change of address
• Bank account changes
• Changes in your child’s education or training status

You can update your details online through your GOV.UK account.

Frequently Asked Questions (FAQs)

1. Can I receive Child Benefit if my income is over £60,000?

Yes, you can still receive Child Benefit; however, you will be subject to the High Income Child Benefit Charge, which may offset the benefit received.

2. How do I stop my Child Benefit payments to avoid the HICBC?

You can opt out of receiving Child Benefit payments by contacting the Child Benefit Office. This will prevent the accumulation of charges if your income exceeds the threshold.

3. What happens if my income fluctuates above and below the £60,000 threshold?

If your income varies, you may need to pay the charge for the years your income exceeds £60,000. It’s essential to monitor your income and file a Self Assessment tax return accordingly.

Click here to learn more.