Parents, take note! From April 2026, your Child Benefit payments are getting a boost. Following Chancellor Rachel Reeves’ Autumn Budget announcement, HMRC has confirmed updated rates for Child Benefit and Guardian’s Allowance, offering families a little extra support in the face of rising costs.
Whether you’re already claiming or thinking of applying, here’s a quick and simple breakdown of what’s changing, how much you could get, and how Tax-Free Childcare could save you even more.
Increases
Starting April 2026, Child Benefit rates will go up in line with the Consumer Price Index (CPI), which stood at 3.8% for the year to September 2025. This small but welcome uplift means:
| Payment Type | Current Weekly Rate | New Weekly Rate | 4-Week Payment |
|---|---|---|---|
| Eldest Child (Child Benefit) | £26.05 | £27.05 | £108.20 |
| Additional Children | £17.25 | £17.90 | £71.60 |
| Guardian’s Allowance | £22.10 | £22.95 | £91.80 |
These rates apply to the 2026/27 tax year and will land in your bank account every four weeks.
Benefit
So what exactly is Child Benefit?
It’s a government payment to help families with the cost of raising children. It’s not means-tested, which means you can claim it regardless of income, although high earners may need to pay back some of it through the High Income Child Benefit Charge (HICBC).
You can claim:
- £27.05 per week for your eldest (or only) child
- £17.90 per week for each additional child
These are tax-free unless someone in your household earns more than £50,000 a year.
Guardian’s
If you’re raising a child who’s lost one or both parents, you might qualify for the Guardian’s Allowance — a non-means-tested payment designed to help guardians cover extra costs.
From April 2026, it rises to £22.95 per week, or £91.80 every four weeks.
You can claim Guardian’s Allowance alongside Child Benefit, so if both apply to your situation, it’s definitely worth checking your eligibility.
Tax-Free
Beyond benefits, working parents can also reduce childcare costs through the Tax-Free Childcare scheme — an often-overlooked financial lifeline.
This government-backed scheme helps cover:
- Nursery fees
- After-school and wraparound clubs
- Holiday care schemes
- Registered childminders
Here’s how it works:
For every £8 you pay in, the government adds £2, up to:
| Child Type | Max Yearly Savings | Max Per Quarter |
|---|---|---|
| Standard child | £2,000 | £500 |
| Disabled child | £4,000 | £1,000 |
That’s up to £500 every three months toward registered childcare providers — a big help, especially during long school breaks or festive periods.
In June 2025, the UK Government paid out £57.7 million in top-ups, averaging over £100 per family.
Apply
The best part? It only takes 20 minutes to apply online.
Once you’re set up, you can:
- Deposit funds
- Spend immediately or save for later
- Withdraw unused funds anytime
It’s flexible and designed to work around your family’s needs.
Criteria
Not everyone qualifies for Tax-Free Childcare, but if you meet these conditions, you probably do:
Have children under 12 (or under 17 if disabled)
Earn at least the equivalent of 16 hours/week at minimum wage
Each parent earns less than £100,000/year
Not currently receiving Universal Credit or childcare vouchers
If you’re self-employed, you can still apply, and joint applications are accepted for couples.
Support
Together, these schemes can ease the financial pressure of raising children — especially as prices continue to rise. Whether it’s the increased Child Benefit, the Guardian’s Allowance, or Tax-Free Childcare, there are multiple options to look into depending on your situation.
Even small changes, like these new rates, can make a big difference when combined with smart budgeting and government-backed savings tools.
FAQs
How much is Child Benefit in 2026?
£27.05 weekly for the eldest child, £17.90 for others.
What is Guardian’s Allowance?
Extra support of £22.95/week for those raising a child without parents.
How does Tax-Free Childcare work?
Pay £8, get £2 extra per child, up to £2,000 yearly.
Who qualifies for Tax-Free Childcare?
Working parents earning under £100k, with kids under 12 or 17 if disabled.
Can I claim Child Benefit and Tax-Free Childcare?
Yes, you can receive both if eligible.
