From April 2025, families in the UK will see an increase in Child Benefit payments. This article breaks down the updated rates, eligibility criteria, income thresholds, and other key details regarding the benefit.
New Child Benefit Rates from April 2025
| Benefit | Previous Rate (Weekly) | New Rate (Weekly) |
|---|---|---|
| For the first child | £25.60 | £26.05 |
| For each additional child | £16.95 | £17.25 |
Unlimited Children Claimable, but Universal Credit Cap Applies
There is no limit to the number of children for whom families can claim Child Benefit. However, Universal Credit has a two-child benefit cap, meaning only two children in a family are eligible under that scheme.
Two-Child Benefit Cap Debate
Former Labour leader Jeremy Corbyn asked work and pensions minister Sir Stephen Timms about the potential removal of the two-child limit on benefits.
Sir Stephen responded that the child poverty taskforce is considering various policy changes, but no commitment to removing the two-child limit has been made yet. He assured that the issue will be examined thoroughly as part of the taskforce’s future report.
Who Can Claim Child Benefit?
You can claim Child Benefit if:
- Your child is under 16
- Or under 20 years old, if they stay in approved education or training
Can Parents of Newborns Backdate Claims?
Yes. Parents of newborns can backdate claims by up to 3 months.
High Income Child Benefit Charge
If either you or your partner earns above the Child Benefit threshold, you may need to pay the High Income Child Benefit Charge.
How Does the Charge Work?
- If your adjusted net income is above the threshold, you’ll be responsible for paying the charge.
- Use the Child Benefit tax calculator to determine if you need to pay the charge and how much it will be.
- The individual with the higher adjusted net income must pay the charge.
Income Threshold: Special Cases
- If either you or your partner earns £80,000 or more, the charge will be the same amount as the benefit payment. In this case, you won’t receive extra money from Child Benefit, but you can still benefit from National Insurance credits.
Child Benefit and National Insurance Credits
When you claim Child Benefit and your child is under 12, you automatically receive National Insurance credits. These help ensure there are no gaps in your record for your State Pension.
Who Can Get National Insurance Credits?
- Primary caregivers who are not working or do not earn enough to pay National Insurance contributions
- If the primary caregiver does not need these credits, they can be transferred to:
- A spouse or partner
- A family member providing care under the Specified Adult Childcare credits scheme
Updating Personal Details
Families with ongoing claims do not need to contact the DWP to receive the increased payments. However, if there are any changes, such as a new bank account or address, you can update details online through GOV.UK.
The increase in Child Benefit payments from April 2025 will provide additional financial relief for families. However, parents with higher incomes should be aware of the High Income Child Benefit Charge. Families can continue benefiting from National Insurance credits, ensuring long-term security for their State Pension. For further assistance, visit GOV.UK to manage your claims or update personal details.
Source: Link
FAQ’s
How much will Child Benefit increase in 2025?
From April 2025, families will receive £26.05 per week for the first child and £17.25 for each additional child.
Is there a limit on the number of children you can claim Child Benefit for?
No, there is no limit to how many children families can claim for under Child Benefit. However, Universal Credit has a two-child cap.
What is the High Income Child Benefit Charge?
The High Income Child Benefit Charge applies if either you or your partner’s income exceeds the threshold. The higher earner is responsible for paying the charge.
Can Child Benefit claims be backdated?
Yes, parents of newborns can backdate their Child Benefit claims by up to 3 months.
What are National Insurance credits, and how do they relate to Child Benefit?
National Insurance credits help fill gaps in your contribution record for the State Pension. These credits are automatically provided when you claim Child Benefit for a child under 12.