UK Child Benefit 2025: Rates, Thresholds & How to Claim

Raising a child is expensive. The UK government helps offset this cost with Child Benefit, a regular payment that most families are entitled to.

For the 2025 tax year (starting April 2025), the rates have increased to £26.05 per week for your first child and £17.25 for each additional child. That’s over £1,300 a year for just one child—tax-free for most people.

However, the rules for high earners have changed. The “High Income Child Benefit Charge” (HICBC) now kicks in at £60,000 (up from the old £50k limit), meaning more middle-income families can keep more of the money.

Key Details at a Glance

What This Opportunity Offers

1. Cash in Your Pocket It is not a voucher. It is cash paid directly into your bank account.

• 1 Child: £1,354 per year.
• 2 Children: £2,251 per year.
• 3 Children: £3,148 per year.

2. National Insurance Credits (The Hidden Benefit) This is arguably more important than the cash.

• If a parent stays home to look after the child (and doesn’t work), they stop paying National Insurance. This creates gaps in their State Pension record.
• The Fix: By claiming Child Benefit, the stay-at-home parent gets National Insurance credits automatically until the child is 12. This protects their future pension.

3. Gateway to Other Help You need a Child Benefit number to apply for other schemes, such as:

• Junior ISA: A tax-free savings account for your child.
• National Insurance Number: Your child automatically gets their NI number at age 16 if you claimed Child Benefit for them.

Who Should Apply

1. All New Parents Even if you earn £100,000, you should still register for the claim (even if you opt out of the payments) to secure the National Insurance credits and get the child their NI number later.

2. Families Earning Under £60,000 If the highest earner in your house makes less than £60k, you keep 100% of the money. It is tax-free.

3. Families Earning £60,000 - £80,000 You fall into the “taper” zone. You will get the money, but you will have to pay some of it back via tax.

• New Rule: The taper is slower now. You only lose 1% of the benefit for every £200 you earn over £60k. It’s still worth claiming!

Insider Tips for a Winning Application

1. The “High Earner” Trap If one parent earns £85,000 and the other earns £0, you have to pay the High Income Charge.

• Strategy: If you earn over £80k, you can tick a box on the form to “Opt Out” of receiving payments.
• Why do this? You avoid the hassle of filing a tax return to pay the money back, BUT you still get the National Insurance credits for the non-working partner. Always fill out the form, even if you opt out of the cash.

2. Backdate It If you were too tired to apply when the baby was born, don’t panic.

• You can backdate the claim by 3 months.
• Warning: You cannot go back further than 3 months. If you wait a year, you lost 9 months of money forever.

3. Salary Sacrifice to Keep the Cash If you earn £62,000, you are just slightly over the threshold.

• Hack: Increase your workplace pension contributions by £2,000. This lowers your “adjusted net income” to £60,000.
• Result: You keep 100% of the Child Benefit AND you have more money in your pension. Win-win.

Application Timeline

• Birth: Register the birth and get the certificate.
• Week 1-4: Apply for Child Benefit online (it takes 10 minutes).
• Week 12: Receive your first payment (backdated to birth).
• Age 16: Benefits stop unless you tell HMRC they are staying in education.

Required Materials

• Child’s Birth Certificate: You might need the physical copy if you apply by post, but online applications often don’t need it if the birth is registered.
• National Insurance Number: For you and your partner.
• Bank Details: Sort code and account number.

Common Mistakes to Avoid

1. Assuming “Household Income” Matters The High Income Charge is based on individual income, not household.

• Scenario A: Couple earns £50k each (Total £100k). Result: They keep ALL the benefit.
• Scenario B: Single earner makes £80k. Result: They lose ALL the benefit.
• Update: The government scrapped plans to change this to a household system in late 2024, so this unfair rule remains.

2. Not Transferring Credits If the higher earner claims the benefit, they get the NI credits. But they don’t need them (because they are working).

• Fix: Make sure the non-working parent is the “claimant” on the form. This ensures the credits go to the person who needs them for their pension.

3. Forgetting to Update at Age 16 When your child turns 16, the computer automatically stops payments.

• Action: If they stay in college or sixth form (A-Levels, T-Levels), you must go online and tell HMRC. You can keep getting paid until they are 20!

Frequently Asked Questions

Is it means-tested? No. Millionaires can claim it. But the tax charge claws it back from high earners.

Can I claim for my stepchild? Yes, if you are responsible for them and they live with you.

What if I share custody? Only one person can claim for a child. Usually, it is the person the child lives with most. You cannot split the money (unless you have 2 kids and each parent claims for one).

How to Apply

1. Apply Online: GOV.UK Child Benefit.
2. Download the App: The HMRC App is the easiest way to manage your claim and see payment dates.

Official GOV.UK Page