Child benefit payments set to increase from April 2024, HMRC announces

Millions of families in the UK who receive Child Benefit are poised for a financial boost starting 6 April 2024, as announced by HM Revenue and Customs (HMRC).

Under the new rates, families with one child will see their annual payment increase by £83.20 to £1,331, and for every additional child, the yearly benefit will rise by £54.60 to £881. These adjustments will apply without any cap on the number of children that can be claimed for.

Each family will receive £102.40 for the first or only child and £67.80 for each subsequent child every four weeks, equating to £25.60 and £16.95 per week respectively. Current beneficiaries need not contact HMRC for these changes to take effect, as the updated payments will automatically be deposited into their bank accounts.

HMRC also provides a streamlined process for updating personal information such as bank details or addresses through its app or online platform. New parents are urged to submit their Child Benefit claims promptly, with the potential for the first payment to be processed in just three days. Claims can be backdated by up to three months.

Moreover, from April 2024, the threshold for the High Income Child Benefit Charge (HICBC) will be raised. Families where the highest earner has an income of up to £60,000 will no longer be subject to the HICBC, a significant increase from the previous £50,000 threshold. For those earning between £60,000 and £80,000, the benefit will gradually reduce and will be completely offset by the HICBC for incomes exceeding £80,000.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “The increase in Child Benefit rates for existing claimants is automatic and families do not need to contact us. New claimants should apply online or using HMRC’s app. Search ‘child benefit’ on GOV.UK for more information.”

Laura Trott, Chief Secretary to the Treasury, said: “We are ending the unfairness in the child benefit system, and as a result 170,000 families will no longer have to pay back child benefit, and nearly half a million families will save an average of around £1,300 next year.

“The legacy of the pandemic and the war in Ukraine has put pressures on everyone’s cost of living. But, by taking difficult decisions, the economy is starting to turn a corner, and we can now provide further support to parents.”