Child Benefit rates to rise by £49.40 a year from April 2027
Child Benefit rates to rise by £49.40 from April 2027

HM Revenue and Customs (HMRC) has confirmed new Child Benefit rates that will give UK households at least £49.40 more per year from April 2027. The announcement follows last week's Budget, in which Chancellor of the Exchequer John Healer delivered the Labour Party's first Budget since Andy Burnham became Prime Minister.

Other measures in the Budget included a continued freeze to fuel duty, a one-off £100 payment for 20 million UK households to help with winter costs, and the scrapping of standing charges on gas bills.

Who can claim Child Benefit

Child Benefit is paid to anyone responsible for bringing up a child who is either under 16, or under 20 and in approved education or training. Only one person can receive Child Benefit for each child, but there is no limit to how many children you can claim for.

Claimants receive payment for each child, usually every four weeks; National Insurance credits that count towards their State Pension; and a National Insurance number for their child without the child having to apply for one, typically issued shortly before the child turns 16.

New rates from April 2027

Around 7 million families across the UK claim Child Benefit. The weekly rate for an eldest or only child is currently £27.05, rising to £28 from April 2027. The rate for additional children is currently £17.90, rising to £18.55 from April 2027.

This means families with one child will receive an annual boost of £49.40, totalling £1,456 per year. For each additional child, the extra amount will be £33.80 per year.

Changes to the High Income Child Benefit Charge

The new rates were announced by the tax office following the Chancellor's Budget speech on Wednesday, October 28, where he set out the government's spending plans for the year ahead. The Budget 2026 document published by The Treasury also sets out HMRC plans to automatically offset Child Benefit overpayments, simplifying how the High Income Child Benefit Charge (HICBC) is paid.

The Treasury said: "HMRC will automatically offset Child Benefit overpayments against the High Income Child Benefit Charge (HICBC), simplifying administration for affected customers by reducing unnecessary payment and repayment transactions. This will be introduced through legislation in Finance Bill 2026-27 with retrospective effect from HICBC's introduction in January 2013."

Under current rules, where a Child Benefit claimant or their partner has an individual adjusted net income of more than £60,000, the higher earner may be subject to paying the HICBC. The charge sees claimants pay back 1 per cent of their Child Benefit for every £200 earned over £60,000, and those earning more than £80,000 must pay it all back. Claimants can choose to pay the tax charge either through their PAYE tax code using the HICBC digital service, or through Self Assessment.