As of May 2025, the UK government has rolled out new child benefit rates to reflect the rising cost of living and to offer greater financial support to families. These changes are part of the broader welfare adjustment efforts seen in the latest fiscal planning by HM Treasury. The updated rates apply to both new and existing claims and affect the weekly amount provided for the first and second child. With inflation impacting household budgets, the 2025 increase is particularly significant for low to middle-income families.
New Child Benefit Rates – May 2025
Effective from April 6, 2025, but reflected in payments from May onwards, the updated weekly amounts are as follows:
| Category | Weekly Rate (2024) | New Weekly Rate (2025) | Annual Increase |
|---|---|---|---|
| First Child | £24.00 | £25.60 | £84.80 |
| Each Additional Child | £15.90 | £17.00 | £57.20 |
These adjustments translate to an annual increase of over £84 for the first child and £57 for each subsequent child. The uplift aims to reduce the financial strain many households face, especially those with multiple dependents.
Eligibility and Income Thresholds
Child Benefit is available to anyone responsible for raising a child under 16 (or under 20 if they remain in approved education or training). However, households with a higher income may see reductions due to the High Income Child Benefit Charge (HICBC). For the 2025/26 tax year, the income threshold for this charge begins at £60,000, unchanged from the previous year. Once a household’s income reaches £80,000, the benefit is entirely clawed back via taxation.
To avoid penalties, families affected by HICBC are encouraged to either opt-out of receiving payments or to submit a Self Assessment tax return. Even if opting out of payments, parents can still register to receive National Insurance credits, which contribute toward their State Pension eligibility.
Claim Process and Payment Timelines
Parents or guardians can apply for Child Benefit online via the official GOV.UK portal or by post using a completed CH2 form. New parents are advised to register their child’s birth and submit their claim promptly to avoid delayed payments. Typically, the first payment is received within 8 to 12 weeks of the claim, though subsequent payments are made every four weeks directly into a nominated bank account.
Child Benefit payments are not affected by employment status or savings, making it a reliable source of support regardless of a family’s financial background. For parents with shared custody, only one individual can claim the benefit per child, so mutual agreement is essential.
Impact on Family Budgets and Wider Implications
The 2025 increase comes at a crucial time, with ongoing economic pressures such as housing costs and energy bills squeezing family finances. The government’s decision to raise Child Benefit aligns with broader measures to ease the cost-of-living crisis. While some argue that the increase still lags behind inflation rates, others welcome it as a step toward strengthening the social safety net.
It’s also important to note the indirect benefits: families receiving Child Benefit can qualify for additional assistance, such as Healthy Start vouchers or free school meals, depending on overall household income.
Conclusion
The May 2025 update to UK Child Benefit represents a meaningful, though measured, step in supporting families during a period of economic uncertainty. While the benefit is not means-tested at the point of claim, the continued application of HICBC means higher earners must weigh the advantages of receiving payments against potential tax implications. For most families, however, the updated rates will provide essential relief and reinforce the state’s role in helping parents manage the costs of raising children.
FAQ
What are the new Child Benefit rates from May 2025?
From May 2025, families will receive £25.60 per week for the first child and £17.00 per week for each additional child.
When do the new Child Benefit rates take effect?
The new rates officially apply from April 6, 2025, but most families will see the increase in their May 2025 payment cycles.
Who is eligible for Child Benefit?
Anyone responsible for a child under 16 (or under 20 if in education or training) can claim, regardless of income. However, those earning over £60,000 may face the High Income Child Benefit Charge.
Do I have to pay tax on Child Benefit?
Not directly. But if your income exceeds £60,000, you may be required to repay some or all of it via the HICBC through Self Assessment.
Can I claim Child Benefit if I’m unemployed?
Yes. Employment status does not affect eligibility for Child Benefit.
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