HMRC confirms Child Benefit and Guardian’s Allowance payment increases from April 2026
Parents and guardians could be set for a financial uplift next year. Following the Autumn Budget announcement last week by Chancellor Rachel Reeves in the House of Commons, HM Revenue and Customs (HMRC) has confirmed an annual rise for Child Benefit and Guardian’s Allowance.
Child Benefits and Guardians Allowance payments will be adjusted in accordance with the Consumer Price Index (CPI) for the year to September 2025, which currently stands at 3.8 per cent. Consequently, from April 2026, the Child Benefit rate for the eldest child will see a rise from £26.05 to £27.05 per week, while the rate for other children will increase from £17.25 to £17.90 per week.
As reported by the Daily Record, the weekly Guardian’s Allowance will also experience an increase from £22.10 to £22.95. Given that these payments are typically made every four weeks, this equates to:
- Child Benefit for the eldest child – £108.20
- Child Benefit for additional children – £71.60
- Guardian’s Allowance – £91.80
Tax-Free Childcare
Working families are also being urged to register for Tax-Free Childcare to assist with the forthcoming school holidays over the festive period. By settling childcare bills through a Tax-Free Childcare account, working families can save up to £2,000 per annum for each child up to the age of 11, or £4,000 per annum for children up to the age of 16 if the child is disabled.
Parents can utilise this scheme to help cover the cost of approved childcare, be it nursery for younger children or wraparound and after-school care clubs during term time, as well as holiday clubs for the upcoming lengthy summer holidays.
In June, the UK Government distributed a total of £57.7 million in top-ups to Tax-Free Childcare accounts, meaning each family received, on average, over £100 towards their childcare costs.
How Tax-Free Childcare works
For every £8 deposited into a Tax-Free Childcare account, the UK Government contributes an additional £2. This means parents can receive up to £500 (or £1,000 if their child is disabled) every three months to help cover their childcare costs.
Once families have established a Tax-Free Childcare account, they can deposit funds and use them immediately or save them in the account for future use. Any unused money in the account can be withdrawn at any point.
According to HMRC, it takes just 20 minutes to apply online for a Tax-Free Childcare account.
Once the account is active, parents can deposit funds and use them straight away or keep them in the account for when they’re needed. Any unused money in the account can be withdrawn at any time.
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Eligibility criteria for Tax-Free Childcare
Families could qualify for Tax-Free Childcare if they:
- Have a child or children aged 11 or under. Eligibility ceases on 1 September following their 11th birthday
- However, if the child is disabled, they may be entitled to up to £4,000 per year until 1 September after their 16th birthday
- Earn, or anticipate earning, at least the National Minimum Wage or Living Wage for an average of 16 hours per week
- Each individual must not have an income exceeding £100,000 per annum
- Do not receive Universal Credit or childcare vouchers
A comprehensive list of eligibility criteria can be found on GOV.UK here.