The government has officially confirmed the new payment rates for Child Benefit and Guardian's Allowance, which will come into effect from April 2026. The increases, announced by HM Revenue and Customs (HMRC), will provide a welcome boost to family finances.
Confirmed Payment Increases for Families
The Department for Work and Pensions (DWP) recently outlined proposed new rates for State Pension and various benefits, including Personal Independence Payment (PIP) and Universal Credit. HMRC has now followed suit by confirming the annual uprating for family-focused payments.
Both Child Benefit and Guardian's Allowance will increase by 3.8%, in line with the Consumer Price Index (CPI) rate for the year to September 2025. This means weekly payments from April 2026 will see a tangible rise.
For the eldest or only child, the Child Benefit rate will increase from £26.05 to £27.05 per week. For any subsequent children, the rate will rise from £17.25 to £17.90 per week.
Guardian's Allowance, paid to those caring for a child whose parents have died, will also see a weekly increase from £22.10 to £22.95.
What the New Rates Mean for Your Budget
As these benefits are typically paid every four weeks, the new amounts will translate into more substantial payments for families managing household budgets.
Every four weeks, parents and guardians can expect to receive:
- £108.20 for the eldest child (Child Benefit)
- £71.60 for each additional child (Child Benefit)
- £91.80 in Guardian's Allowance
These confirmed figures provide certainty for families planning their finances for the 2026/27 financial year.
Maximising Support with Tax-Free Childcare
Alongside the confirmation of benefit rates, working families are being reminded to explore the Tax-Free Childcare scheme to help with childcare costs, particularly during upcoming school holidays.
This government initiative can save eligible families up to £2,000 per year for each child under 11. For parents of disabled children, the support rises to £4,000 per year until the child turns 17.
The scheme works by the government adding £2 for every £8 a family deposits into their dedicated online account. This support can be used for a wide range of approved childcare, including nurseries, after-school clubs, and holiday clubs.
HMRC states that applying online takes around 20 minutes. Once the account is open, funds can be deposited and used immediately or saved for future needs. Any unused money can be withdrawn at any time.
Are You Eligible for Tax-Free Childcare?
Your family might qualify for Tax-Free Childcare if you meet the following criteria:
- You have a child or children aged 11 or under (or under 17 if disabled).
- You, and your partner if you have one, each expect to earn at least the National Minimum or Living Wage for 16 hours a week on average.
- Neither you nor your partner has an individual annual income over £100,000.
- You are not receiving Universal Credit or childcare vouchers.
The government's investment in this scheme is significant. In June alone, £57.7 million was paid in top-ups to Tax-Free Childcare accounts, providing an average of over £100 per family towards their childcare bills.
The confirmation of increased benefit rates for 2026, coupled with existing schemes like Tax-Free Childcare, highlights the ongoing financial support mechanisms available to families across the UK.
