HM Revenue and Customs (HMRC) has officially announced important changes to Child Benefit payments that will take effect from August 2025. These updates are likely to impact millions of families across the UK, especially those with one or more children under 20. If you’re a parent, carer, or guardian, it’s crucial to understand how these changes might affect your payments and what actions, if any, you need to take.
What Is Child Benefit?
Child Benefit is a regular payment from the UK government to help parents and guardians with the cost of raising children. It’s usually paid every four weeks and is not dependent on income, although higher earners may face a tax charge. The benefit is available for children under the age of 16, or up to 20 if they stay in approved education or training.
What Changes Are Coming In August?
Starting from August 5, 2025, HMRC will roll out new eligibility thresholds, payment rates, and some administrative adjustments to the way Child Benefit is handled. This is part of the government’s ongoing review to modernise welfare and ensure fair support distribution based on the cost of living and family needs.
Updated Payment Rates
One of the most significant changes will be a rise in the weekly Child Benefit rates. Here’s what to expect:
- For the eldest or only child, the new weekly rate will increase from £25.60 to £26.90
- For each additional child, the weekly rate will go from £16.95 to £17.85
This change will mean a modest increase in monthly income for qualifying families. For example, a family with two children will now receive approximately £1,886 annually, up from £1,768.
New Income Thresholds
Currently, families where one parent earns over £50,000 per year must pay a High Income Child Benefit Tax Charge (HICBC). From August 2025, the threshold will rise to £60,000, providing relief to thousands of families who were previously forced to repay a significant portion of their benefit through taxes.
The tapering limit — where the benefit is fully reclaimed — is also changing from £60,000 to £70,000. This means families earning between £60,000 and £70,000 will only lose a portion, rather than all, of their Child Benefit through the HICBC.
Simplified Claim Process For New Parents
From August, HMRC will also implement a faster digital registration system for new parents. Instead of the traditional paper form submission, new applicants can now:
- Register their newborn’s birth online via HMRC portal
- Apply for Child Benefit directly without mailing any documents
- Get confirmation and payment status via text or email
This modernised process is aimed at reducing delays and improving access for busy families, especially in their early weeks after childbirth.
Changes For Children Aged 16–20
Another change will affect parents of teenagers who are continuing education. As per the new rules:
- HMRC will automatically continue Child Benefit for children turning 16, if their educational institution confirms enrolment.
- Parents will no longer need to fill out separate paperwork every year.
However, it remains essential that schools and colleges report enrolment promptly to avoid any payment interruption.
How It Affects You
If you’re currently receiving Child Benefit, the changes will automatically apply to your payments from August 2025. You do not need to reapply or take any action unless:
- You’ve changed address or bank details
- Your child is leaving full-time education
- Your income has significantly changed and you may now fall into or out of HICBC range
Make sure to keep your records up to date with HMRC to avoid overpayments or interruptions.
How To Check If You’re Eligible
To qualify for Child Benefit after August 2025, you must:
- Be responsible for a child under 16 (or under 20 in education)
- Live in the UK
- Provide your child’s birth certificate and National Insurance number (where applicable)
- Ensure your income is below the updated HICBC threshold (for full benefit without tax charge)
You can check your eligibility or update your details on the HMRC Child Benefit page.
Payment Dates In August
HMRC has confirmed that the first payment under the new system will begin from Monday, 5 August 2025. Future payments will continue on a four-week cycle, typically landing on a Monday or Tuesday depending on your payment setup.
You will receive a payment notification with the new amount in late July 2025.
Common Concerns For Parents
Many UK families have questions about how the new rules will impact them. Here are some frequently asked concerns:
- Will I need to reapply after August?
No, current claimants will be transitioned automatically. - Will the rise in Child Benefit rates affect my other benefits?
In most cases, no. Child Benefit is not counted as income for Universal Credit or Housing Benefit. - What if I earn slightly over the new threshold?
You will need to complete a Self Assessment tax return to repay part of the benefit under HICBC. - Can both parents claim the benefit?
No. Only one person can receive Child Benefit per child, usually the primary carer.
Tips To Maximise Your Benefit
If you’re close to the new income threshold, consider:
- Making pension contributions to reduce your taxable income
- Transferring the benefit claim to the lower-earning partner
- Using Child Benefit to register for National Insurance credits, which can count towards your State Pension
What HMRC Says
An official HMRC spokesperson commented:
“These changes reflect our commitment to supporting working families while ensuring fairness in the tax system. The updated thresholds will ease the burden for many, and our new digital tools make it easier than ever to access this vital support.”
Final Thoughts
For millions of UK parents, this update brings welcome financial relief and a more streamlined process. If you’re already receiving Child Benefit or plan to apply soon, it’s important to stay informed about the changes and act early if your circumstances change.
With cost of living pressures still high, the increase in benefit rates and updated income rules offer much-needed support — especially for middle-income families.
FAQs
Q1. What is the new Child Benefit amount for 2025?
From August 2025, you will get £26.90 per week for the first child and £17.85 per week for additional children.
Q2. When do the new rates start?
The new rates begin on Monday, 5 August 2025.
Q3. Do I need to reapply under the new system?
No. Existing claimants will continue to receive payments automatically.
Q4. What is the new income limit for the High Income Child Benefit Charge?
The limit is increasing from £50,000 to £60,000, with a full taper up to £70,000.
Q5. Can I still apply for Child Benefit after my child turns 16?
Yes, as long as they’re in approved education or training, and the school confirms their enrolment.
