HMRC Automatically Increases Child Benefit to £1,406 for Millions of Households
In a significant financial boost for families across the UK, HM Revenue and Customs (HMRC) has automatically raised Child Benefit rates, with over 7 million households now receiving £1,406 annually for their eldest or only child. This increase, which took effect from 6 April, requires no action from recipients as it is applied automatically by HMRC.
New Rates and Eligibility Details
The updated Child Benefit rates now stand at £27.05 per week, up from £26.05 during the 2025/2026 financial year. For additional children, families are entitled to £17.90 per week, totaling £930.80 per year. Importantly, there is no limit on the number of children for whom parents can claim this benefit, ensuring broad support for larger families.
Myrtle Lloyd, HMRC’s Chief Customer Officer, emphasized the importance of timely claims, stating: “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 possible after your baby is born ensures you don’t miss out on vital financial support.”
Claiming Process and Backdating
Despite more than 6.9 million families currently receiving Child Benefit payments, only 72% of families claim it within their baby’s first year. HMRC allows claims to be backdated for up to three months from the date the claim is made, but this is only possible from the date HMRC receives the claim. This means thousands of families may be missing out on eligible funds if they delay their application.
Claiming Child Benefit also provides a crucial long-term benefit: it ensures that children automatically receive their National Insurance number when they turn 16, simplifying future administrative processes.
Tools and Resources for Families
To help families navigate their finances, Anna Sharkey from the Money and Pensions Service recommended using free resources: “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.”
Additional tools for new parents include:
- The Baby Cost Calculator to assist with budgeting for a new baby.
- The Baby Money Timeline, which provides key financial planning dates.
Child Benefit is typically paid every four weeks directly into a bank account. HMRC app users can conveniently track their payments online, with over 928,000 parents having used the app to manage their Child Benefit accounts since April 2025.
This automatic increase underscores HMRC’s commitment to supporting families during times of rising costs, offering a seamless and efficient way to access essential financial aid.
