Families in the United Kingdom receiving Child Benefit or Guardian's Allowance are set for an increase in their payments from April 2026.
The adjustment, announced in the recent Autumn Budget, reflects a 3.8% rise pegged to the Consumer Price Index (CPI). Chancellor Rachel Reeves confirmed the uplift in the House of Commons, with HM Revenue and Customs (HMRC) later setting out the specific rates.
These changes are intended to provide further assistance to parents and guardians facing higher living costs.
Scheduled Increases for Child Benefit and Guardian's Allowance
From April 2026, the weekly rate for Child Benefit will increase from £26.05 to £27.05 for the eldest child.
The rate for any additional children will rise from £17.25 to £17.90 per week. Guardian's Allowance, which supports those caring for a child whose parents have died, will also increase from £22.10 to £22.95 per week.
These rate adjustments are applied annually and are based on the September 2025 CPI figure, which has been confirmed at 3.8%. The measure is part of the government's wider strategy to counteract the effects of inflation, according to Treasury guidance.
Payment Details and Frequency
Child Benefit and Guardian's Allowance payments are typically made every four weeks. Under the new rates, this means the main child in a household will result in a payment of £108.20 every four weeks, with each additional child adding £71.60 in the same period. Guardian's Allowance recipients will receive £91.80 every four weeks.
Parents and guardians are encouraged to review their eligibility and ensure their information is up to date on the official government portal. Payments are usually made directly into a nominated bank account.
Tax-Free Childcare Support for Families
In addition to Child Benefit and Guardian's Allowance, working families across the UK are being urged to consider Tax-Free Childcare as a means of offsetting rising childcare costs.
The scheme allows eligible parents to save up to £2,000 a year per child under 12, or up to £4,000 a year for each disabled child under 17. Parents can use a Tax-Free Childcare account to pay for approved childcare, such as nursery, after-school clubs, and holiday schemes.
This support is available especially during school holidays, when childcare costs can be particularly acute.
How Tax-Free Childcare Works
For every £8 paid into a Tax-Free Childcare account, the government contributes an additional £2. This can result in up to £500 in top-ups every three months per eligible child. For disabled children, this rises to £1,000 per three months.
Unused funds in the account remain accessible for future childcare costs or can be withdrawn as needed. HMRC states that the application process for Tax-Free Childcare is online and typically takes around 20 minutes to complete. Once an account is set up, families may begin using funds immediately.
Eligibility for Tax-Free Childcare
To qualify, families must have a child aged 11 or under, with eligibility ending on 1 September following the child's 11th birthday. Disabled children may be eligible up to age 16.
Applicants must expect to earn at least the National Minimum Wage or Living Wage for 16 hours per week on average and must not earn more than £100,000 per year individually. Families are not eligible if they claim Universal Credit or receive childcare vouchers. Full eligibility details are published on the GOV.UK website and should be reviewed before applying.
Final Summary
From April 2026, families in the UK will benefit from a 3.8% rise in Child Benefit and Guardian's Allowance payments, reflecting government efforts to assist households impacted by inflation.
At the same time, the Tax-Free Childcare scheme remains a key avenue for working parents to manage the costs of childcare, with eligibility based on income and age criteria. Full information on the updated payment rates and support mechanisms is available through official government channels.
For further tax and budgeting insights, resources such as the Pie app can help families plan ahead.
