Millions of families across the UK are set to receive a welcome boost to their household budgets next year, after HM Revenue and Customs (HMRC) officially confirmed an increase in Child Benefit and Guardian's Allowance payments.
Confirmed Payment Increases for 2026
The uplift follows Chancellor Rachel Reeves's Autumn Budget statement and will see both benefits rise in line with the Consumer Price Index (CPI). The CPI rate for the year to September 2025, which is used for the calculation, was 3.8 per cent.
From the start of the new tax year in April 2026, the weekly Child Benefit rate for the eldest or only child will increase from £26.05 to £27.05. For any subsequent children, the rate will rise from £17.25 to £17.90 per week.
Furthermore, the weekly Guardian's Allowance payment will see a similar rise, going up from £22.10 to £22.95. As these benefits are typically paid every four weeks, this translates to the following four-weekly amounts:
- £108.20 for the eldest child.
- £71.60 for each additional child.
- £91.80 for Guardian's Allowance.
Maximising Support with Tax-Free Childcare
Alongside the confirmed benefit rises, HMRC is urging eligible working parents to explore the Tax-Free Childcare scheme, especially with the costly school holidays approaching.
This government-backed initiative can save families up to £2,000 per year for each child under 12, or £4,000 per year for disabled children under 17. The scheme works by the government adding £2 for every £8 parents pay into a dedicated online account.
These funds can be used for a wide range of approved childcare, including nurseries, after-school clubs, and holiday clubs. In June of this year, the government paid out over £57.7 million in top-ups, providing an average of more than £100 per family towards their costs.
Are You Eligible for Tax-Free Childcare?
To qualify for Tax-Free Childcare, families generally must meet the following criteria:
- Have a child aged 11 or under (or 16 if disabled).
- Each parent must earn at least the equivalent of 16 hours per week at the National Minimum or Living Wage.
- Neither parent has an individual annual income over £100,000.
- The household does not receive Universal Credit or childcare vouchers.
HMRC states that applying for an account online takes around 20 minutes. Once set up, money can be deposited, used immediately, or saved for future needs, with any unused funds available for withdrawal at any time.
The dual announcement of rising benefit rates and the push for greater take-up of childcare support highlights ongoing government efforts to address the financial pressures facing families, though many will be keenly awaiting the full implementation of these changes in 2026.
