UK households handed £49.40 boost by HMRC with 'no limit'

UK households claiming Child Benefit are being handed an annual payment boost of £49.40 from HM Revenue and Customs (HMRC), with "no limit" to how many children they can claim for.

Parents or guardians who are responsible for raising a child under the age of 16, or under 20 if they stay in approved education or training, can claim Child Benefit from HMRC to help with childcare costs. While only one person can claim the benefit for a child, there is no limit to how many children you can claim for, so families with more than one child could get even more than £49.40 extra from HMRC per year.

The extra cash comes from an uplift to payments which will take effect from April, with HM Treasury confirming a 3.5% boost to current rates, in line with the consumer price index (CPI) inflation rate for the year to September 2026.

From April, the Child Benefit rate for the eldest or only child will rise from £27.05 per week to £28, while the rate for any additional children will go up from £17.90 per week to £18.55.

It means that parents claiming for their only or eldest child can get £1,456 in Child Benefit payments per year from HMRC in the 2027 to 2028 tax year, giving them an extra £49.40 annually on current rates.

For those with more than one child, they can get an extra £964.60 per year from April - an increase of £33.80 annually on current amounts.

The new rates were announced following Chancellor Healey’s Budget speech on October 28 where he set out the government’s spending plans for the year ahead.

Confirming the boosted payments from April, Emma Reynolds, Chief Secretary to the Treasury said: "I have decided to increase child benefit rates in line with the consumer price index for the year to September 2026, which is 3.5%. Guardian’s allowance will also increase by the same rate. This means that, from 12 April 2027:

• the child benefit rate for the eldest child will increase from £27.05 to £28.00 per week;
• the child benefit rate for other children will increase from £17.90 to £18.55 per week;
• guardian’s allowance will increase from £22.95 to £23.75 per week.

"I have determined that there will be no need for changes to tax credits rates in the tax year 2027-28, as there are no tax credits awards after 5 April 2025. The new rates will apply across the United Kingdom."

Documents published by Treasury after the Budget also sets out HMRC plans to automatically offset Child Benefit overpayments, in a move aimed at simplifying how the High Income Child Benefit Charge (HICBC) is paid.

The Treasury said: “HMRC will automatically offset Child Benefit overpayments against the High Income Child Benefit Charge (HICBC), simplifying administration for affected customers by reducing unnecessary payment and repayment transactions. This will be introduced through legislation in Finance Bill 2026-27 with retrospective effect from HICBC’s introduction in January 2013.”

Under current rules, where a Child Benefit claimant or their partner has an individual adjusted net income of more than £60,000, the higher earner may be subject to pay the HICBC.

The charge sees claimants pay back 1% of their Child Benefit for every £200 earned over £60,000. If you earn more than £80,000 then you must pay it all back.

Claimants can choose to pay the tax charge either through their PAYE tax code using the HICBC digital service, or through Self Assessment.