HM Revenue and Customs (HMRC) has officially confirmed the new payment rates for Child Benefit and Guardian's Allowance, which will come into effect from April 2026. The increases are part of the annual uprating process and 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 a range of benefits, including the State Pension and Universal Credit. HMRC has now followed suit, confirming that Child Benefit and Guardian's Allowance will increase by 3.8%. This figure is based on the Consumer Price Index (CPI) for the year to September 2025.
From the start of the 2026/27 financial year, the weekly rate for the eldest or only child will rise from £26.05 to £27.05. For any subsequent children, the rate will increase 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 uplift 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 regular payments for eligible families. The four-weekly totals from April 2026 will be as follows:
- Child Benefit for the eldest child: £108.20
- Child Benefit for additional children: £71.60
- Guardian's Allowance: £91.80
These confirmed rises aim to help household budgets keep pace with the cost of living.
Don't Forget Tax-Free Childcare Support
Alongside the announcement on benefit rates, HMRC is urging working families to explore the Tax-Free Childcare scheme. This government initiative can provide significant help with childcare costs, particularly during school holidays.
For every £8 a family pays into their online Tax-Free Childcare account, the government adds an extra £2. This can amount to up to £2,000 per year per child (or £4,000 for a disabled child until age 16). The support is available for children aged up to 11, or 16 if they have a disability.
In June of last year, the UK Government topped up accounts with a total of £57.7 million, providing an average of over £100 per family towards childcare bills. The scheme covers approved childcare like nurseries, after-school clubs, and holiday clubs.
Are You Eligible for Tax-Free Childcare?
Families may qualify for Tax-Free Childcare if they meet the following criteria:
- They have a child or children aged 11 or under (or 16 if disabled).
- Each parent earns, or expects to earn, at least the National Minimum Wage or Living Wage for 16 hours a week on average.
- Neither parent has an individual annual income over £100,000.
- The family does not receive Universal Credit or childcare vouchers.
HMRC states that applying for an account online takes around 20 minutes. Once open, funds can be deposited and used immediately or saved for future needs, with any unused money available for withdrawal at any time.
With the new Child Benefit rates now set for 2026 and ongoing support available through Tax-Free Childcare, families are encouraged to ensure they are claiming all the financial help they are entitled to.
