Millions of families across the UK are set to receive a boost to their household budgets, as HM Revenue and Customs (HMRC) has officially confirmed an increase in weekly Child Benefit payments. The rise, announced as part of the government's Autumn Budget, will take effect from April 2026.
New Payment Rates for 2026
The uplift is tied directly to the Consumer Price Index (CPI) rate of 3.8% recorded in September 2025. This means weekly payments will see a tangible increase for parents and guardians. For the eldest or only child, the rate will climb from £26.05 to £27.05 per week. The payment for any subsequent children will also rise, moving from £17.25 to £17.90 each week.
Furthermore, the weekly Guardian's Allowance, which supports those caring for children who have lost their parents, is also increasing. It will go up from £22.10 to £22.95 weekly. As this allowance is typically paid every four weeks, the total payment will amount to £91.80 for that period.
Maximising Savings with Tax-Free Childcare
Alongside the benefit confirmation, HMRC is urging eligible working families to explore the Tax-Free Childcare scheme, which can provide significant annual savings. This government-backed initiative allows families to save up to £2,000 per child each year until the child turns 11.
The scheme operates on a 'top-up' basis: for every £8 a parent pays into their online childcare account, the government will add £2. This support can provide up to £500 every three months to help cover the costs of approved childcare.
How to Use the Scheme
Tax-Free Childcare is designed to be flexible. The funds can be used for a wide range of registered childcare providers, including nurseries, childminders, and after-school clubs. Money deposited into the account can be used immediately to pay for current costs, or it can be saved for future expenses. Crucially, any funds placed into the account remain available for withdrawal at any time, offering families full control over their childcare budgeting.
This dual announcement of increased benefit rates and a reminder of available savings underscores the government's focus on family finances. The confirmed 3.8% rise aims to help household incomes keep pace with inflation, while the promotion of Tax-Free Childcare highlights a key resource for reducing the substantial cost of childcare for working parents.
