Child Benefit is a tax-free payment to help with the costs of raising a child. This guide explains current rates, who can claim, and the High Income Child Benefit Charge.
Child Benefit Rates 2025/26
| Child | Weekly | 4-Weekly | Annual |
|---|---|---|---|
| Eldest/only child | £25.60 | £102.40 | £1,331.20 |
| Additional children (each) | £16.95 | £67.80 | £881.40 |
Total by Number of Children
| Children | Weekly | Annual |
|---|---|---|
| 1 child | £25.60 | £1,331 |
| 2 children | £42.55 | £2,213 |
| 3 children | £59.50 | £3,094 |
| 4 children | £76.45 | £3,975 |
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High Income Child Benefit Charge (HICBC)
HICBC Calculation
| Income | % Clawed Back | Keep (2 children) |
|---|---|---|
| Under £60,000 | 0% | £2,213 |
| £65,000 | 25% | £1,660 |
| £70,000 | 50% | £1,107 |
| £75,000 | 75% | £553 |
| £80,000+ | 100% | £0 |
Should You Still Claim?
Even if you would pay 100% back, consider claiming because:
- National Insurance credits: The claimant gets NI credits towards State Pension
- Child gets NI number: Automatically issued at 16
- Income might change: May earn less in future years
- Can opt out of payments: Claim but don't receive money, keep benefits
Eligibility
- Child under 16, or under 20 if in approved education/training
- You are responsible for the child
- You live in the UK (or qualifying overseas posting)
- One claim per child (usually the main carer)
How to Claim
- Register the birth (form CH2 sent automatically)
- Or complete form CH2 online or by post
- Provide child's birth certificate
- Payments start 3 weeks after claim
- Can backdate up to 3 months
How Child Benefit Calculations Work: The Methodology
Child Benefit is a straightforward universal payment with two rates: a higher rate for the eldest or only child and a lower rate for each subsequent child. The payment is made every 4 weeks (not monthly), which means there are 13 payment periods per year. This is why the annual total is slightly different from simply multiplying the weekly rate by 52.
The High Income Child Benefit Charge (HICBC) is where the calculation becomes more complex. The HICBC is technically an income tax charge, not a reduction in benefit. It is assessed on the higher earner in the household -- even if that person is not the one receiving the benefit. The charge is calculated at 1% of the total Child Benefit received for every £200 of adjusted net income above £60,000. At £80,000, the charge equals 100% of the benefit, effectively clawing it all back.
The formula for HICBC is: Charge = (Child Benefit amount) x (Income above £60,000 / £200) x 1%. For example, if you earn £70,000 and receive £2,213 in Child Benefit (2 children), the charge is: £2,213 x (£10,000 / £200) x 1% = £2,213 x 50 x 0.01 = £1,106.50. You keep £1,106.50 of the benefit after paying the tax charge.
Adjusted net income is your total taxable income minus certain deductions such as pension contributions, Gift Aid donations, and trading losses. This means making additional pension contributions can reduce your adjusted net income below the £60,000 threshold, potentially eliminating the HICBC entirely. This is one of the most effective and legitimate tax planning strategies for families with higher-earning parents.
UK-Specific Context: Child Benefit in the UK System
Child Benefit was introduced in 1977, replacing the previous system of family allowances and child tax allowances. It is administered by HM Revenue and Customs (HMRC) and is one of the few remaining universal benefits in the UK welfare system. Unlike means-tested benefits such as Universal Credit, anyone who is responsible for a child can claim Child Benefit regardless of their income, though the HICBC may claw it back for higher earners.
The benefit has important interactions with the National Insurance system. The person who claims Child Benefit receives National Insurance credits for each week they are not working or earning below the Lower Earnings Limit (£6,396 per year in 2025/26). These credits count towards your qualifying years for the State Pension, which requires 35 years for the full pension. This is particularly valuable for stay-at-home parents who might otherwise have gaps in their NI record. A single missing NI year could reduce your State Pension by approximately £327 per year -- every year for the rest of your retirement.
Child Benefit continues until the child turns 16, or until age 20 if the child remains in approved full-time education or training (such as A-levels, BTEC, or Scottish Highers). It does not cover university education. The benefit stops on 31 August after the child's 16th birthday if they leave education, or at the end of February, May, August, or November after they leave approved education or training before age 20.
Historically, Child Benefit rates have not kept pace with inflation. Between 2011 and 2024, the eldest child rate rose from £20.30 to £25.60 per week -- an increase of 26% over 13 years. During the same period, cumulative CPI inflation was approximately 40%. This means the real value of Child Benefit has declined significantly, reducing its purchasing power for families. The government reviews rates annually, typically announcing changes in the Autumn Budget for implementation the following April.
The two-child limit for additional child elements within Universal Credit and Child Tax Credits (introduced in 2017) does not apply to Child Benefit. You receive Child Benefit for every qualifying child regardless of how many you have. This makes Child Benefit one of the few payments that scale with family size without any cap.
Worked Examples: UK Child Benefit Scenarios
Example 1: Family with Three Children, Both Parents Below £60,000
Parents earn £45,000 and £32,000. Three children aged 8, 5, and 2.
Weekly benefit: £25.60 + £16.95 + £16.95 = £59.50
Annual benefit: £59.50 x 52 = £3,094 per year
HICBC: None (higher earner is below £60,000)
Full benefit retained -- £3,094 tax-free per year.
Example 2: Higher Earner at £68,000 with Two Children
One parent earns £68,000, the other earns £25,000. Two children.
Annual benefit: £2,213
HICBC calculation: Income over £60,000 = £8,000. Charge = £8,000/£200 = 40 x 1% = 40%
Tax charge: £2,213 x 40% = £885.20
Net benefit retained: £2,213 - £885.20 = £1,327.80
Example 3: Using Pension Contributions to Avoid HICBC
Parent earns £65,000 gross. Two children (£2,213 benefit). Makes £5,000 additional pension contribution.
Adjusted net income: £65,000 - £5,000 = £60,000
HICBC: £0 (income is exactly at the threshold)
Result: Full £2,213 benefit retained PLUS £5,000 tax-efficient pension savings. The pension contribution saves £1,106.50 in HICBC plus £2,000 in income tax relief (at 40%), costing only £3,000 net for £5,000 in pension savings.
Common Mistakes and Tips
Frequently Asked Questions
What happens to Child Benefit if parents separate?
Only one person can receive Child Benefit for each child. If parents separate, the benefit normally goes to the parent with whom the child lives. If care is shared, only one parent can claim. If you cannot agree, HMRC will decide based on who has the child the majority of the time. The HICBC assessment changes too -- it is based on the income of the claimant's household, so a lower-earning parent living alone may avoid the charge entirely.
Can I claim Child Benefit for a stepchild or foster child?
You can claim for a stepchild if they live with you. Foster carers typically cannot claim Child Benefit as they receive fostering allowances from the local authority instead. However, if a foster placement becomes a permanent arrangement through an adoption or special guardianship order, Child Benefit can then be claimed. Kinship carers (grandparents, aunts, uncles) looking after a child can also claim.
How is HICBC assessed if both parents earn over £60,000?
The HICBC is charged only on the higher earner. If both parents earn £70,000, only the one earning more (even if by just £1) pays the charge. If both earn exactly the same, the charge applies to whichever one is not the claimant. Importantly, the charge is based on individual income, not household income -- so a couple where both earn £59,000 (combined £118,000) pays no HICBC, while a single earner on £65,000 does.
Does Child Benefit count as income for other means-tested benefits?
No. Child Benefit is not counted as income when calculating entitlement to Universal Credit, Housing Benefit, or Council Tax Reduction. It is also not taxable (the HICBC is a separate income tax charge, not a tax on the benefit itself). This means claiming Child Benefit does not reduce your entitlement to other support.
Guardian's Allowance
If you care for a child whose parents have died, you may also get Guardian's Allowance of £21.75 per week on top of Child Benefit.
How do I claim Child Benefit for a newborn in the UK?
What are the National Insurance credit benefits of claiming Child Benefit?
James Mitchell, ACCA
Chartered Accountant & Former HMRC Advisor
James is a Chartered Certified Accountant (ACCA) specialising in UK personal taxation and financial planning. With over 12 years in practice and a background as a former HMRC compliance officer, he brings authoritative insight to complex tax topics.