Understanding Child Benefit in 2025
Child Benefit is a tax-free payment made to parents or guardians responsible for children under 16, or under 20 if they're in approved education or training. In 2025, the rates have been updated to provide better support for UK families.
Current Child Benefit Rates (2025)
- Eldest or only child: £25.60 per week (£1,331.20 per year)
- Additional children: £16.95 per week each (£881.40 per year each)
Who Can Claim Child Benefit?
Eligibility Requirements
You can claim Child Benefit if:
- You're responsible for a child under 16
- You're responsible for a 16 to 19-year-old in approved education or training
- You live in the UK
- You're the primary carer for the child
Who Gets Priority?
If more than one person could claim for the same child, priority goes to:
- The person the child lives with most of the time
- The person who gets Child Tax Credit or Universal Credit for the child
- The person with the highest income
High Income Child Benefit Charge
How It Works
The High Income Child Benefit Charge (HICBC) affects families where someone earns over £50,000:
- £50,000-£60,000: Gradual reduction in benefit through tax charge
- Over £60,000: Full tax charge equal to Child Benefit received
- Rate: 1% charge for every £100 of income over £50,000
Strategies for High Earners
If you're affected by HICBC, consider these options:
1. Continue Claiming
- Maintain National Insurance credits
- Preserve future State Pension entitlement
- Pay back through Self Assessment
- Easier to restart if income drops
2. Opt Out of Payments
- Stop receiving payments but keep claim open
- Avoid Self Assessment requirement
- Still get National Insurance credits
- Can restart payments anytime
3. Income Management
- Increase pension contributions
- Use salary sacrifice schemes
- Time bonus payments strategically
- Consider gift aid donations
Additional Support for Families
1. Child Tax Credit (Legacy System)
For families not on Universal Credit:
- Family element: £545 per year
- Child element: £3,455 per child per year
- Disabled child element: Additional £3,905 per year
- Severely disabled child element: Additional £1,595 per year
2. Universal Credit Child Element
For families on Universal Credit:
- First child: £333.33 per month
- Additional children: £287.92 per month each
- Disabled child addition: £156.11 (lower) or £487.58 (higher) per month
3. Free School Meals
Available if you receive:
- Universal Credit with earnings under £7,400
- Income Support
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance
- Child Tax Credit with income under £16,190
4. Healthy Start Vouchers
£8.50 per week for families with children under 4:
- Use for milk, fresh fruit, and vegetables
- Free vitamin supplements
- Available if receiving certain benefits
- Pregnant women also eligible
Childcare Support Options
1. Tax-Free Childcare
- Government tops up payments by 25%
- Up to £500 every 3 months (£2,000 per year)
- Up to £1,000 every 3 months for disabled children
- Available for children up to 11 (17 if disabled)
2. 15 Hours Free Childcare
- All 3-4 year olds eligible
- 2-year-olds in low-income families
- 15 hours per week during term time
- Can be stretched across more weeks
3. 30 Hours Free Childcare
- 3-4 year olds with working parents
- Both parents must earn minimum wage for 16 hours
- Maximum income £100,000 per parent
- Available during term time
4. Childcare Vouchers (Closed Scheme)
- Existing schemes can continue
- Up to £55 per week tax and NI free
- Higher rate taxpayers get bigger savings
- No new applications accepted
Special Circumstances
Separated Parents
Child Benefit considerations for separated families:
- Only one person can claim per child
- Usually the parent the child lives with most
- Can affect other benefit entitlements
- Consider impact on National Insurance credits
Children with Disabilities
Additional support available:
- Disability Living Allowance (DLA): Up to £172.75 per week
- Personal Independence Payment (PIP): For 16+ with disabilities
- Carer's Allowance: £81.90 per week for carers
- Disabled child element: In Universal Credit or Child Tax Credit
Children in Education
Extended Child Benefit for 16-20 year olds:
- Full-time non-advanced education (A-levels, BTECs)
- Approved training courses
- Part-time if child has special needs
- Stops when child leaves education or turns 20
How to Apply and Manage Your Claim
Application Process
- Apply as soon as possible after child's birth
- Use form CH2 or apply online
- Provide birth certificate (or adoption certificate)
- Include your National Insurance number
- Set up bank account for payments
When Payments Start
- Usually within 5-6 weeks of application
- Backdated to birth date if applied within 3 months
- Paid every 4 weeks (weekly in some areas)
- Usually on Mondays or Tuesdays
Reporting Changes
You must report changes that could affect your claim:
- Change of address
- Child leaves education
- Child starts living with someone else
- Income changes (for HICBC)
- Moving abroad
Common Mistakes to Avoid
1. Not Claiming When Eligible
- Claim even if affected by HICBC
- Protects National Insurance record
- Can opt out of payments later
- Easier than restarting claim
2. Forgetting to Update Information
- Report changes promptly
- Avoid overpayments
- Keep records of communications
- Set reminders for annual reviews
3. Missing Additional Support
- Research all available benefits
- Check local authority support
- Consider childcare assistance
- Look into education grants
Maximizing Your Family's Support
Annual Review Checklist
- Review all benefit entitlements
- Check if income has changed significantly
- Consider HICBC implications
- Update childcare arrangements
- Review education status of older children
- Check for new support schemes
Professional Advice
Consider seeking advice if:
- Your circumstances are complex
- You're unsure about HICBC
- You have children with special needs
- You're separating from your partner
- You're moving abroad