Child Benefit and Guardian’s Allowance Set for Slight Increase in 2025

In a recent update from His Majesty’s Revenue and Customs (HMRC), the UK government is set to increase the weekly rates for both Child Benefit and Guardian’s Allowance starting from 7 April 2025. This follows a routine review of these benefits in line with the annual change in the Consumer Prices Index (CPI).

What’s Changing?

According to the new order, the weekly rate of Child Benefit will see a modest increase of 1.7%, rounded to the nearest 5 pence. This adjustment means that the rate for the eldest child will rise from £25.60 to £26.05, while any subsequent children will see their rate increase from £16.95 to £17.25.

Similarly, the Guardian’s Allowance, which is aimed at supporting those responsible for a child whose parents have passed away, will also increase by 1.7%, with payments going from £21.75 to £22.10 weekly.

Why the Increase?

This adjustment comes as a response to the rise in the general price level in the UK, as measured from September 2023 to September 2024. The government's aim is to ensure that these benefits maintain their value amidst inflation. It's worth noting that the policy itself remains unchanged, with the annual review being a legal requirement.

Who Will Benefit?

Families receiving Child Benefit will notice a slight increase in their weekly payments. For those not affected by the High-Income Child Benefit Charge, this will mean an additional 45p per week for the first child and 30p for each subsequent child, amounting to an average annual increase of £34.55.

What About Businesses and Charities?

The change is expected to have no significant impact on businesses, charities, or voluntary bodies, and there’s no new burden on the public sector either.

Looking Ahead

These rates will continue to be reviewed annually as per the Social Security Administration Act 1992, ensuring they keep pace with inflation and maintain their intended support for families.

For those looking for more detailed information on current and past rates, the GOV.UK website remains a comprehensive resource.