HMRC has confirmed the new weekly Child Benefit payment rates from April 2026
The Department for Work and Pensions (DWP) recently unveiled the proposed new payment rates from April for the State Pension and benefits including Personal Independence Payment (PIP), Attendance Allowance, Universal Credit and Carer’s Allowance. HM Revenue and Customs ( HMRC ) has also confirmed the annual uprating for Child Benefit and Guardian’s Allowance.
Child Benefits and Guardians Allowance payments will increase in line with the Consumer Price Index (CPI) for the year to September 2025, which is 3.8 per cent. This means that, from April 2026, the Child Benefit rate for the eldest child will rise from £26.05 to £27.05 per week, while the rate for other children will go up from £17.25 to £17.90 per week, reports the Daily Record.
Guardian’s Allowance will see an increase from £22.10 to £22.95 per week.
As the payments are typically paid every four weeks, this amounts to:
- Child Benefit, eldest child – £108.20
- Child Benefit, additional children – £71.60
- Guardian’s Allowance – £91.80
Tax-Free Childcare
Working families are also being urged to sign up for Tax-Free Childcare to assist with the upcoming school holidays over the festive season. Paying childcare bills through a Tax-Free Childcare account can save working families up to £2,000 per year for each of their children up to the age of 11 or £4,000 per year up to the age of 16 if the child is disabled.
Parents can utilise the scheme to offset the cost of approved childcare, whether that’s nursery for younger children or wraparound or after-school care clubs during term time, as well as holiday clubs for the lengthy summer holidays ahead.
In June, the UK Government spent a total of £57.7 million in top-ups to Tax-Free Childcare accounts, meaning each family received, on average, more than £100 towards their childcare bills. For every £8 you put into a Tax-Free Childcare account, the UK Government adds an extra £2. This means parents can receive up to £500 (or £1,000 if their child is disabled) every three months to help cover their childcare costs.
Once families have set up a Tax-Free Childcare account, they can deposit money and use it immediately, or keep it in the account for when it’s needed. Any unused funds in the account can be withdrawn at any time. HMRC has said that it takes just 20 minutes to apply online for a Tax-Free Childcare account.
Once the account is open, parents can deposit money and use it straight away, or keep it in the account for when it’s needed. Any unused funds in the account can be withdrawn at any time.
Who’s eligible for Tax-Free Childcare?
Families might be eligible for Tax-Free Childcare if they:
- Have a child or children aged 11 or under. They stop being eligible on September 1 after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until September 1 after their 16th birthday
- Earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
- Each earn no more than £100,000 per annum
- Do not receive Universal Credit or childcare vouchers
A full list of the eligibility criteria is available on GOV.UK here.
