Child Benefit Payments Set to Increase, HMRC Urges Prompt Claims
Millions of families across the UK are poised to benefit from a significant rise in Child Benefit payments, with HM Revenue and Customs (HMRC) strongly encouraging parents to submit their claims early to ensure they do not miss out on this crucial financial support. The new rates will take effect from April 6, bringing welcome relief to households managing the costs of raising children.
Enhanced Weekly Rates and Annual Benefits
From the start of next week, the weekly Child Benefit rate will increase to £27.05 for the eldest or only child, and £17.90 for each additional child. This translates to annual payments of £1,406.60 for the first child and £930.80 for subsequent children, marking an annual rise of £52 for the first child and £33.80 for each additional child. Importantly, there is no limit on the number of children parents can claim for, providing substantial support for larger families.
Urgent Call to Action for New Parents
Despite more than 6.9 million families currently receiving Child Benefit, HMRC reports that only 72% of parents make a claim in their baby's first year. The revenue authority warns that claims can only be backdated by three months from the date they are received, meaning thousands of new parents risk missing out on vital support if they delay their application.
Myrtle Lloyd, HMRC's chief customer officer, emphasised the importance of timely claims: "Looking after a child can be expensive, especially a newborn baby. It takes just a few minutes to claim Child Benefit via the app, and doing so as soon as you can after your baby is born will ensure you don't miss out on vital financial support."
Digital Services Streamline the Process
HMRC has made claiming and managing Child Benefit easier than ever through its digital services:
- The HMRC app and online digital service offer the fastest and simplest way for parents to claim and manage their benefits
- Since the digital service launched, more than 1.5 million families have claimed online
- Nearly 85% of all claims are now made through digital channels
- The app allows users to track payments, make new claims, update personal or bank details, add children to a claim, or view and print Proof of Entitlement
- Since April 2025, over 928,000 parents have used the app to manage their accounts
To further assist parents, HMRC has released a YouTube guide demonstrating how to make a claim quickly and easily.
Essential Documents for Claiming
To make a successful claim, parents need to provide several key documents:
- An online HMRC account
- Their child's birth or adoption certificate
- Bank details
- Their own National Insurance number (and their partner's if applicable)
For children born outside the UK, additional documents such as a passport or travel document may be required.
Financial Planning Tools for Families
Anna Sharkey from the Money and Pensions Service highlighted the benefits of proactive financial planning: "Use MoneyHelper's free Benefits Calculator if you think you, or someone you know, might be eligible for Child Benefit. The calculator will show you all the benefits you're eligible for."
Other valuable tools for new parents include:
- The Baby Cost Calculator to help budget for having a baby
- The Baby Money Timeline which provides key dates to help plan finances
Understanding the High Income Child Benefit Charge
Parents or carers earning over £60,000 may need to pay the High Income Child Benefit Charge (HICBC) if either partner receives Child Benefit and at least one earns more than the threshold. This means they will have to pay back some or all of their Child Benefit.
The charge may also apply if someone else gets Child Benefit for a child living with you and they contribute at least an equal amount towards the child's upkeep. Those affected can now pay through the HICBC PAYE digital service rather than filing a Self Assessment tax return, if they have no other reason to submit one. Eligible individuals can register via the HMRC app or GOV.UK, though they can continue to pay via Self Assessment if preferred.
Restarting Payments and National Insurance Credits
Families who previously opted out of Child Benefit can easily restart payments through the app or online services. Even households subject to the HICBC can still receive National Insurance credits if they claim but opt out of receiving payments, ensuring future entitlement to benefits like the State Pension.
With the increase coming into effect next week, HMRC urges all eligible parents to claim promptly to secure their full entitlement and make the most of this enhanced financial support. The combination of increased payments and streamlined digital services represents a significant boost for families across the country.
