In a move that will bring relief to millions of families, the UK government has officially announced new child benefit payment rates set to begin from August 2025. The updated figures are aimed at helping parents cope with rising living costs, especially as inflation continues to affect household budgets. The Department for Work and Pensions (DWP) and HM Revenue & Customs (HMRC) have both confirmed that eligible families will see a boost in their monthly payments.
The increase in child benefit is part of a wider set of measures introduced to support low and middle-income households. Parents are encouraged to check their eligibility, updated rates, and payment dates to ensure they receive the correct support without delay.
What Is Child Benefit In The UK?
Child Benefit is a regular payment from the government to parents or guardians who are responsible for raising children under the age of 16 (or under 20 if they stay in approved education or training). It is a non-means-tested benefit, meaning you can claim it regardless of your income, although households earning above £50,000 per year may face a High-Income Child Benefit Tax Charge.
The benefit is usually paid every four weeks into a bank or building society account. For single parents or families on low income, it may be paid weekly.
New Child Benefit Rates From August 2025
As per the announcement, the child benefit rates for August 2025 will be increased to reflect the current economic challenges. The updated weekly rates are:
- Eldest or only child: £27.60 per week (up from £25.60)
- Each additional child: £18.25 per week (up from £17.00)
This means parents with two children could now receive up to £1,889.80 per year, an increase of more than £130 annually compared to the previous rate.
Who Is Eligible For The New Payment?
To qualify for child benefit, you must:
- Be responsible for a child under 16 (or under 20 if still in full-time education or training)
- Live in the UK
- Apply as soon as your child is born or comes to live with you
- Have a valid National Insurance number and provide proof of the child’s identity
Both employed and unemployed individuals are eligible. You do not need to be on Universal Credit or other benefits to claim.
Parents who are EU, EEA, or Swiss nationals may also be eligible, depending on their immigration status and residency conditions.
How To Claim Child Benefit?
If you’re a new parent, you can apply for Child Benefit using form CH2, which can be downloaded from the GOV.UK website. You must send it to the Child Benefit Office along with the child’s original birth certificate.
Existing parents who are welcoming a second or third child into the family can simply update their claim by phone or online.
You can apply for Child Benefit at any time, but it is best to do so within 3 months of the child’s birth or placement to ensure you receive backdated payments.
August 2025 Payment Dates
HMRC has shared the updated schedule for child benefit payments in August 2025:
- Monday 5 August
- Monday 12 August
- Monday 19 August
- Monday 26 August (This payment may arrive earlier due to the bank holiday)
The exact date depends on your National Insurance number and when you first applied. Payments usually arrive on a Monday or Tuesday. If a scheduled payment date falls on a bank holiday, the payment will typically be issued on the working day before.
What If You Don’t Receive Your Payment?
If you’re expecting a payment and it hasn’t arrived:
- Check your bank account or payment method
- Wait until at least 3 working days after the expected date
- Contact the Child Benefit Office at 0300 200 3100
Delays may occur due to bank holidays or system updates, but most issues are resolved quickly. Keep your personal reference number and National Insurance number handy when contacting the office.
How Child Benefit Affects Other Benefits
Child Benefit is considered a non-taxable benefit unless your income is above £50,000. However, it can still play a crucial role in other areas:
- It helps qualify for National Insurance credits
- It supports claims for Universal Credit
- It does not reduce your Housing Benefit or Council Tax Support
Parents earning more than £50,000 must fill in a Self-Assessment tax return each year to pay back part of the benefit under the High-Income Child Benefit Charge.
What Is The High-Income Child Benefit Tax Charge?
This charge applies if either you or your partner earns over £50,000 a year. You’ll have to pay back some or all of your Child Benefit in tax. For every £100 over the threshold, you repay 1% of the benefit. At £60,000, the entire benefit must be repaid.
You can choose not to receive payments to avoid the tax charge but still claim the benefit so you don’t miss out on National Insurance credits.
What If You’re Divorced Or Separated?
Only one parent can claim Child Benefit for each child. If you’re separated or divorced, the parent who the child lives with most often usually receives the payment.
If custody is shared equally, the parents must decide who claims. Payments cannot be split between two people, even if both are legally responsible for the child.
Changes You Must Report
You must inform the Child Benefit Office about changes in your circumstances, such as:
- The child leaves full-time education or training
- The child turns 16 and doesn’t continue in education
- The child goes to live with someone else
- You move abroad or change your bank details
Failure to report changes could result in overpayments or penalties.
Child Benefit And Immigration Status
If you’re a non-UK national, your eligibility depends on your immigration and residency status. Many EU, EEA, and Swiss citizens living in the UK can still claim Child Benefit, provided they meet habitual residence requirements and have applied to the EU Settlement Scheme.
For non-EU nationals, visa conditions may restrict access to public funds, including Child Benefit. However, exceptions exist for refugees and protected persons.
Recent Reactions To The Announcement
Charities and family support organisations have welcomed the increase. The Joseph Rowntree Foundation stated that while the raise is a step in the right direction, more support is still needed for families hit hardest by rising food and housing costs.
Parents across the UK have expressed relief online, with many saying the increase will help cover essential back-to-school expenses in September.
Will There Be Further Increases?
There is growing pressure on the government to index Child Benefit with inflation or average wage growth to ensure it remains meaningful. While the August 2025 rates reflect a modest increase, advocacy groups are calling for regular updates and more flexible criteria.
A full review of child-related benefits is expected by the end of the year, and further announcements may be made in the Autumn Budget 2025.
Final Thoughts
For UK families struggling with rising costs, the newly announced Child Benefit increase in August 2025 comes as a much-needed boost. With clearer payment dates and eligibility guidelines now published, it’s essential for parents to stay informed and act quickly if any changes apply to their circumstances.
The revised rates will help cover everyday family expenses, and although modest, they represent a continued commitment from the government to supporting working and low-income families.