HMRC Announces Significant Child Benefit Increase for Eligible Families
HM Revenue and Customs (HMRC) is implementing a substantial increase in child benefit payments for parents with children born after 2010. The new rates, effective for the tax year ending 5 April 2027, will provide financial support to thousands of families across the country.
Updated Payment Rates for the 2026-2027 Tax Year
The revised child benefit structure offers £27.05 per week for the first or only child, representing a 3.84% increase from the previous year's rate of £26.05. For younger children, the weekly payment rises to £17.90, marking a 3.77% increase from £17.25. These adjustments reflect HMRC's commitment to supporting family finances during challenging economic times.
Eligibility and Claim Process
Parents and carers can claim Child Benefit if they are responsible for a child under 16 years old, or under 20 if the child remains in approved full-time education or training. HMRC recently encouraged eligible families through social media, stating: "Got a child under 16 (or under 20 in approved education/training)? Join over one million parents and carers who have claimed Child Benefit online!"
The claim process has been streamlined through digital platforms, with applications accepted via the HMRC app or official website. Employment status, savings, or investments do not affect eligibility, though residents living abroad typically cannot claim unless specific exceptions apply.
National Insurance Credits and State Pension Benefits
A crucial aspect of claiming Child Benefit is the automatic accrual of National Insurance (NI) credits, which contribute toward State Pension eligibility. Most individuals require at least 35 years of NI credits to qualify for the full State Pension. Financial experts, including Martin Lewis's Money Saving Expert team, emphasize that this benefit is particularly valuable for non-earners or those earning less than £125 weekly, the threshold for automatic NI credits.
Interaction with Other Benefits
Child Benefit payments generally do not reduce other benefit entitlements, except when the Benefit Cap applies. This cap typically affects recipients of Housing Benefit or the housing element of Universal Credit. HMRC ensures that the increased rates provide meaningful support without compromising other financial assistance programs.
The enhanced child benefit rates demonstrate the government's ongoing efforts to alleviate financial pressures on families, particularly those with children born after 2010. Parents are encouraged to review their eligibility and submit claims to access these increased payments and valuable National Insurance credits.
