Millions of families who claim Child Benefit will soon be given more money every month.

HMRC is increasing payments and benefit thresholds and here’s what it could mean for your household’s allowance.

What is child benefit?

If you’re responsible for raising a child who is under the age of 16 – or under 20 and still in approved education or training – then you’re entitled to claim Child Benefit.

The cash allowance, which is normally paid every four weeks, is only paid to one parent or carer but there is no limit on how many children you can claim for.

The money handed out currently stands at £24 a week for the first or only child, and £15.90 for each additional child.

However the amount you are entitled to receive is means tested – meaning that higher income earners may be liable to a charge if they earn over the set threshold. But these limits too are soon to change.

What is changing?

Child Benefit payments are increasing.

Parents are to soon be given £102.40 every four weeks – or £25.60 per week – for the first or only child and £67.80 every four weeks – or £16.95 per week - for each additional child.

This means families with one child will now have an annual allowance of £1,331 a year, an increase of £83.20, and up to £881 for every additional child, an increase of £54.60.

When will the increase happen?

Families already claiming Child Benefit will automatically receive their increased payments from Saturday, April 6, HMRC has confirmed.

Do I need to do anything?

Households with ongoing claims do not need to contact HMRC and the increased payments will be paid directly into their bank accounts.

Anyone who needs to update their personal details, such as a change of bank account or address, can do so using the HMRC app or online at GOV.UK.

Parents with a newborn baby are encouraged to make a claim online as soon as possible and could receive their first payment in as little as three days. Child Benefit claims can also be backdated up to a maximum of three months.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, added: “The increase in Child Benefit rates for existing claimants is automatic and families do not need to contact us.

“New claimants should apply online or using HMRC’s app. Search ‘child benefit’ on GOV.UK for more information.”

Higher Income charges

From Saturday, April 6 families where the highest earner has a salary of up to £60,000 a year will also not any longer be subject to the High Income Child Benefit Charge (HICBC).

Previously, a person who had an annual income of £50,000 or more would be liable to pay the charge if they or their partner were claiming Child Benefit payments.

Laura Trott, Chief Secretary to the Treasury, said: “We are ending the unfairness in the child benefit system, and as a result 170,000 families will no longer have to pay back child benefit, and nearly half a million families will save an average of around £1,300 next year.”

For those earning between £60,000 and £80,000, the amount of Child Benefit they are entitled to receive will reduce as their income increases within this salary range.

However, if an individual’s income exceeds £80,000 the charge will be equal to the Child Benefit payments received and parents who make a claim can then choose to opt-out of receiving Child Benefit payments completely but still receive National Insurance credits if one parent is not working.

Reinstating payments

Parents with an income above £50,000, who want to now reinstate their Child Benefit before April 6, 2024, may be subject to HICBC charges if they choose to start payments in the 2023 to 2024 tax year.

For new claimants who claim Child Benefit on or after 6 April 2024, any HICBC liability will be based on the new 2024 to 2025 threshold of £60,000 to £80,000, says HMRC.