Starting 6 July 2025, UK families will receive higher Child Benefit payments—a welcome change amid rising living expenses. Whether you’re a first-time parent or have older children still in education, this small boost could make a meaningful difference to your budget and your future pension.
Here’s a breakdown of what’s changing, who qualifies, and why you should consider applying—even if you’re a high earner.
What Is Child Benefit and Who Can Claim?
Child Benefit is a regular government payment to help with the costs of raising children. You can claim if:
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You live in the UK
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You’re legally responsible for a child
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The child is under 16, or under 20 if in approved education/training
Only one person per child can claim the benefit, and you don’t need to be working to qualify.
What’s Changing from 6 July 2025?
| Child | Old Weekly Rate | New Weekly Rate | Annual Increase |
|---|---|---|---|
| First (eldest or only) | £25.60 | £26.90 | +£67.60/year |
| Each additional child | £16.95 | £17.80 | +£44.20/year (per child) |
Example (2 children):
➡️ Old total: £170.20/month
➡️ New total: £178.80/month
That’s an extra £103.20 a year—not life-changing, but helpful when food, childcare, and school uniforms add up.
What About High Earners?
Even if you (or your partner) earn over £60,000/year, it’s smart to still apply for Child Benefit—then choose to opt out of receiving payments to avoid the High-Income Child Benefit Charge (HICBC).
Why apply anyway?
You’ll still earn National Insurance credits, which count toward your State Pension—an overlooked but crucial benefit.
| Income Level | Impact |
|---|---|
| £50,000–£60,000 | Partial repayment via Self Assessment |
| £60,000+ | Full repayment (100%) |
💡 Tip: If your income fluctuates, even one lower-earning year could make payments worth it again.
How to Apply (It’s Easy)
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Go to the official HMRC Child Benefit website
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Fill out the form (online or post)
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Include birth certificates or adoption papers if needed
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You can backdate up to 3 months if you forgot to apply after birth
Payments usually begin within 8–12 weeks of applying.
When Will You Be Paid?
Child Benefit is paid every 4 weeks (some may get it weekly if they’re single parents or on certain benefits). Payments typically arrive on Mondays or Tuesdays, directly into your bank account.
Also Read – £300 Cost of Living Payment: DWP Warning Over Official Letters
How Does the UK Stack Up?
Compared to other countries:
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🇩🇪 Germany: Child benefit is more generous but income-based
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🇫🇷 France: Offers tiered support depending on family size
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🇳🇴 Norway: Blends child benefit with universal childcare access
The UK’s model is more universal, meaning almost all families are eligible, even if they later pay it back through taxes.
Why It Matters More Than Ever
The 2025 increase comes at a time when UK households are still feeling the squeeze. Energy prices, rent, and grocery bills remain high, so every little bit helps.
Researchers consistently find that Child Benefit reduces child poverty, improves educational outcomes, and gives parents more breathing room—especially single-parent or low-income families.
Even for middle-class households, it’s a quiet but crucial support that offsets everyday expenses like:
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School meals or uniforms
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Transportation to school
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After-school clubs or weekend activities
Something Extra: Turn Child Benefit into a Savings Boost
Here’s a clever idea: If your budget allows, set aside the Child Benefit money each month into a Junior ISA or savings account. Over time, that small amount could turn into:
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A university fund
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First car savings
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Or a house deposit starter
Just £44.70 a week becomes over £2,300 in a year for two children—even more if invested smartly.
Also Read – £450 DWP Bonus Still Available for State Pensioners With Savings Over £35,000
FAQs
📅 When does the rate increase begin?
From 6 July 2025.
💰 How often is Child Benefit paid?
Every 4 weeks—or weekly in certain situations.
💼 I earn over £60,000—should I still apply?
Yes. Apply to get NI credits and preserve your State Pension eligibility.
🍼 I just had a baby. How long can I wait to claim?
You can backdate up to 3 months—apply as soon as possible.
