If you’re a parent or guardian in the UK, there’s some good news coming your way in April 2026. The UK Government has confirmed that Child Benefit and Guardian’s Allowance payments will increase starting next spring. This follows the Autumn Budget announcement, and the updates are tied directly to the latest inflation figures.
Not sure how this affects your family? Don’t worry—we’ve broken it down into seven key things you need to know about the new rates and how to maximise your benefits.
Increase
Starting in April 2026, Child Benefit payments will rise by 3.8%, matching the Consumer Price Index (CPI) for the year to September 2025. This is a routine adjustment designed to help families keep up with inflation.
Even though it may seem like a small increase, every bit adds up—especially if you have multiple children. These boosts can help cover everyday costs like school supplies, meals, and clothes.
Rates
Here’s exactly what the new weekly Child Benefit rates will look like:
| Benefit Type | Current Rate (2025) | New Rate (April 2026) |
|---|---|---|
| Eldest Child | £26.05 | £27.05 |
| Additional Children | £17.25 | £17.90 |
| Guardian’s Allowance | £22.10 | £22.95 |
That’s £1 more per week for your first child and £0.65 more for each additional child. Over a year, that’s an extra £52 per eldest child and £33.80 per additional child. Not massive—but helpful!
Guardian
If you’re caring for a child whose parents have died, you may be receiving the Guardian’s Allowance. That payment is also getting a boost—from £22.10 to £22.95 per week. It’s paid on top of Child Benefit and is tax-free.
So, if you’re receiving both benefits, you’ll see a slightly larger deposit in your account each week starting in April 2026.
Budget
The rise in payments was part of the Autumn Budget announcement, which focused on adjusting public support systems in line with rising living costs.
This means the government is officially recognising how inflation is affecting families—and is adjusting support accordingly.
TaxFree
While you’re looking at Child Benefit changes, don’t overlook Tax-Free Childcare—a program many working parents still don’t take advantage of.
With this scheme, the government adds £2 for every £8 you pay into a childcare account. That could mean:
- Up to £2,000 per year for each child under 11
- Up to £4,000 per year for children with disabilities under 17
It works like a prepaid account, and the funds can only be used for approved childcare providers.
Savings
Let’s break it down even further. If you put £400 per month into a childcare account, the government will top it up with £100. That adds up to £500 every three months, or £2,000 a year.
If you’re eligible and not using it, you’re potentially leaving thousands on the table.
Action
So, what should you do now?
- Check your eligibility – Visit gov.uk and review the requirements for Child Benefit and Tax-Free Childcare.
- Register or update your info – Make sure your details are current to avoid delays when the new rates roll out.
- Apply for Tax-Free Childcare – If you’re working and paying for childcare, this is one of the most valuable benefits available.
- Budget accordingly – While the increase is modest, it’s consistent and guaranteed, so plan your finances with the updated figures in mind.
Whether you have one child or several, these changes will offer a little more breathing room in your monthly budget—and possibly some big savings through the Tax-Free Childcare program.
FAQs
How much will Child Benefit increase?
It will rise by 3.8% starting April 2026.
What’s the new rate for the first child?
It increases from £26.05 to £27.05 weekly.
When will the new rates start?
The new rates begin in April 2026.
How does Tax-Free Childcare work?
You get £2 for every £8 you contribute.
Is Guardian’s Allowance increasing too?
Yes, from £22.10 to £22.95 per week.
