HMRC has announced that millions of UK families receiving Child Benefit will see their payments increase from 6 April 2024.

In a move to support households, the Government has raised the annual entitlement for families with one child to £1,331, marking an increase of £83.20. Similarly, payments for additional children will now reach up to £881 per year, with no restriction on the number of children a family can claim for.

The revised scheme outlines payments of £102.40 every four weeks (£25.60 weekly) for the first or only child and £67.80 (£16.95 weekly) for each subsequent child. HMRC has streamlined the process for families with existing claims, ensuring continued direct bank deposits without the need for contact. Updates to personal details, such as bank or address changes, are easily made via the HMRC app or online.

For families welcoming a new baby, early online claim submission can result in receiving the first payment within three days, with the option to backdate claims up to three months.

Additionally, from April 2024, the High Income Child Benefit Charge (HICBC) will not affect families where the highest earner's salary is up to £60,000, raising the previous threshold of £50,000. For incomes between £60,000 and £80,000, the benefit reduces gradually, aligning fully with the HICBC for earnings above £80,000.

Parents earning over £50,000 are advised to adjust their Child Benefit claims before April to avoid potential charges for the 2023/24 tax year, while new thresholds apply to claims from April 2024 onwards.

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."

Talk to us about your finances.