HMRC Confirms Child Benefit Increase Starting April 2027
UK households will receive higher weekly payments following a 3.5% inflation-linked adjustment.
1Scheduled Payment Uplift
HM Revenue and Customs has confirmed that Child Benefit rates will rise by 3.5% starting April 12, 2027. This adjustment aligns with the Consumer Price Index inflation recorded for the year ending September 2026. The increase ensures that government support for families keeps pace with the general level of national price growth.
2New Weekly Rates
The payment for an eldest or only child will increase from £27.05 to £28.00 per week. Simultaneously, the rate for additional children will rise from £17.90 to £18.55 per week. These changes were officially confirmed following the Autumn Budget delivered by Chancellor John Healey on October 28, 2026, to support households.
3Annual Financial Impact
Parents can now receive up to £1,456 annually for their eldest or only child, representing an extra £49.40 per year. For those with additional children, the annual benefit will reach £964.60, marking a total increase of £33.80. These figures reflect the updated weekly rates applied across the 2027 to 2028 tax year.
4Guardian Allowance Adjustments
Alongside Child Benefit, the Guardian’s Allowance is also set to increase by 3.5% from April 2027. The weekly rate will rise from £22.95 to £23.75. This adjustment fulfills the statutory duty placed on the Treasury to review and increase these specific allowances in line with the prevailing consumer price growth metrics.
5Automated Overpayment Offsetting
The Treasury plans to introduce a new system to automatically offset Child Benefit overpayments against the High Income Child Benefit Charge. This change, appearing in the Finance Bill 2026-27, aims to simplify administration for customers. It will have retrospective effect dating back to the charge's original introduction in January 2013 for affected taxpayers.
6High Income Charge Rules
The High Income Child Benefit Charge applies when a claimant or their partner has an adjusted net income exceeding £60,000. Claimants must pay back 1% of their benefit for every £200 earned above this threshold. If an individual's income exceeds £80,000, the entire amount of the benefit must be paid back.
7Payment and Compliance Methods
Claimants subject to the High Income Child Benefit Charge have two primary methods for repayment. They can choose to pay the tax charge through their PAYE tax code using the digital service or via the Self Assessment process. These options provide flexibility for managing tax obligations while receiving the standard benefit payments.
8Statutory Regulatory Framework
The Treasury’s actions are governed by the Tax Credits Act 2002 and the Social Security Administration Act 1992. These laws mandate an annual review of tax credits and child benefits. By linking these payments to inflation, the government seeks to maintain the real-term value of financial support provided to eligible UK families.