HMRC Confirms Big Changes to Child Benefit Payments Next Month – Find Out How It Will Affect Your Family

Millions of families in the UK will soon experience significant changes to their Child Benefit payments as HM Revenue & Customs (HMRC) rolls out a major overhaul in April 2025. The changes include revised payment dates due to Easter holidays, an increase in benefit rates, and an adjustment to the High Income Child Benefit Charge (HICBC) threshold.

With over 7 million families relying on Child Benefit, these updates are expected to impact a broad range of households. Some families will see higher payments, while others will benefit from reduced tax liabilities. This article outlines everything parents need to know about the upcoming changes.

1. Payment Date Changes Due to Easter Holidays

One of the first noticeable changes will be in the payment schedule for Child Benefit due to the Easter bank holidays in April 2025.

Key Date Change:

• Payments scheduled for Monday, April 21 (Easter Monday) and Tuesday, April 22 will be brought forward to Thursday, April 17.

Since Good Friday (April 18) and Easter Monday (April 21) are public holidays, HMRC has adjusted the payment dates to ensure families receive their benefits earlier. This change will help households manage their finances during the holiday period.

However, parents should note that the next scheduled payment may take longer to arrive, so it’s crucial to budget accordingly.

2. Increase in Child Benefit Rates

Families will receive a boost in Child Benefit payments from April 2025, helping parents cope with the rising costs of raising children.

New Weekly Child Benefit Rates:

• First or only child: £26.05 per week (previously £25.60)
• Each additional child: £17.25 per week (previously £16.95)

These increases provide an extra £23.40 per year for the first child and £15.60 per year for each additional child. While this may seem like a small change, it represents an effort by the government to keep up with inflation and support families.

3. Higher Threshold for the High Income Child Benefit Charge (HICBC)

Perhaps the most significant financial change is the increase in the High Income Child Benefit Charge (HICBC) threshold, which will allow thousands of families to keep more of their Child Benefit payments.

What’s Changing?

• Previously, if one parent earned £50,000 or more, they had to pay back part of their Child Benefit through the HICBC tax charge.
• From April 6, 2024, the threshold increases to £60,000, meaning more families will retain their full Child Benefit.
• The new taper range means families earning between £60,000 and £80,000 will see a gradual reduction in their Child Benefit, instead of the previous cut-off at £60,000.
• Families where a parent earns £80,000 or more will still lose their Child Benefit entirely through taxation.

This adjustment aims to reduce the number of middle-income families affected by the charge, as previous thresholds had not been updated for years, despite rising wages and inflation.

To check how the HICBC affects your household, visit the official UK government page on HICBC.

4. What Do These Changes Mean for Families?

Who Benefits?

• Families earning below £60,000: Will no longer need to pay the High Income Child Benefit Charge.
• Families earning between £60,000 and £80,000: Will see a more gradual reduction in their Child Benefit instead of losing it entirely.
• All families receiving Child Benefit: Will get slightly higher payments starting in April.

Who Could Lose Out?

• Parents who fail to update their earnings information with HMRC may still be charged under the old system.
• Families where one parent earns over £80,000 will continue to lose their full Child Benefit through taxation.

5. How to Prepare for the Changes

• Check your earnings to see if the new HICBC threshold affects you.
• Plan your budget around the adjusted payment dates in April.
• Ensure your HMRC details are up to date to avoid delays in payments or unexpected tax charges.

Conclusion

The April 2025 overhaul of Child Benefit payments introduces positive changes for many UK families, with higher payments, updated tax thresholds, and adjusted payment schedules.

While some high earners will continue to see reductions, middle-income families will retain more of their Child Benefit, making the system fairer and more aligned with modern income levels.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.