The UK government has officially confirmed updated Child Benefit rates set to take effect in April 2025. These changes follow parliamentary discussions and are designed to help families cope with the rising cost of living. While the increases are modest, they still provide meaningful support to millions of households. Here’s what families need to know about the new weekly and monthly Child Benefit payments and how other rules, such as the Universal Credit cap and High Income Child Benefit Charge, may affect you.
New Child Benefit Rates from April 2025
From April 2025, families receiving Child Benefit will see a slight increase in weekly payments. The updated amounts are as follows:
| Child | Weekly Rate | Monthly Equivalent (Approx.) |
|---|---|---|
| First Child | £26.05 | £104.20 |
| Each Additional Child | £17.25 | £69.00 |
This represents a modest increase from the previous rate of £25.60 per week for the first child.
There is no cap on how many children families can claim Child Benefit for. However, if you’re receiving Universal Credit, be aware that only the first two children are considered in the benefits calculation due to the two-child limit.
Universal Credit vs Child Benefit: What’s the Difference?
While Child Benefit can be claimed for an unlimited number of children, Universal Credit includes a two-child policy. This means:
- Child Benefit: Paid for every child, regardless of family size.
- Universal Credit: Only supports up to two children per family (with limited exceptions).
During a recent Commons session, MP Jeremy Corbyn questioned whether the two-child Universal Credit cap might be lifted. In response, Work and Pensions Minister Sir Stephen Timms stated the issue is under review by a child poverty task force but no decision has been made yet.
National Insurance Credits and Your State Pension
One of the lesser-known benefits of claiming Child Benefit is that it comes with National Insurance credits if your child is under 12. These credits:
- Help fill gaps in your National Insurance record.
- Count toward your State Pension eligibility.
- Are automatically applied when you claim Child Benefit (if eligible).
This is especially helpful for stay-at-home parents who may not be working during early child-rearing years.
Who Can Claim Child Benefit?
You can claim Child Benefit if:
- You are responsible for a child under 16 (or under 20 if they stay in approved education/training).
- You are living in the UK.
- Only one person per child can receive Child Benefit.
- You apply through GOV.UK and provide required information.
If you or your partner earns above a certain amount, your benefit could be reduced through the High Income Child Benefit Charge (HICBC).
The High Income Child Benefit Charge Explained
If you or your partner earns over £80,000 per year, you’ll be affected by the High Income Child Benefit Charge. Here’s how it works:
- If earnings are £80,000 or more, the charge equals 100% of the benefit received.
- You don’t lose eligibility for National Insurance credits, even if the payment is clawed back through the charge.
- You must submit a Self-Assessment tax return annually to pay the charge.
For incomes between £50,000 and £80,000, the charge is applied on a sliding scale, reducing the amount of Child Benefit you effectively receive.
No Need to Reapply for Increased Payments
Families already receiving Child Benefit do not need to reapply to get the new rates. The updated payments will be applied automatically. However, you should update your details if:
- You move to a new address.
- You change your bank account.
- There are changes to your family circumstances.
These updates can be made quickly online via the GOV.UK Child Benefit portal.
The April 2025 increase in Child Benefit rates will offer some welcome support for UK families, particularly during a time of economic uncertainty. While the raise isn’t drastic, every little bit helps. Be mindful of the income thresholds that could reduce your payments and consider the long-term value of National Insurance credits for your pension. For changes or new claims, GOV.UK remains the best resource.
FAQs
How much Child Benefit will I get for two children in April 2025?
You’ll receive £26.05 for the first child and £17.25 for the second, totaling £43.30 per week or approximately £173.20 per month.
Do I need to apply again to get the new rates?
No. If you’re already claiming Child Benefit, the increased payment will be applied automatically.
Can both parents claim Child Benefit?
No. Only one person can claim Child Benefit for each child.
What happens if I earn more than £80,000?
You’ll pay back the full benefit amount through the High Income Child Benefit Charge, but you’ll still receive National Insurance credits.
Does Universal Credit also increase in April 2025?
This article focuses on Child Benefit. Any updates to Universal Credit should be checked separately on GOV.UK.
