The Tax Credits Act 2002 and Social Security Administration Act 1992 place a statutory duty on His Majesty’s Treasury to review the rates of child benefit each year in line with the general level of prices. There is a further statutory duty on the Treasury to increase guardian’s allowance in line with price growth. I have now concluded the review for the tax year 2026-27.
I have decided to increase child benefit rates in line with the consumer prices index for the year to September 2025, which is 3.8%. Guardian’s allowance will also increase by the same rate. This means that, from 6 April 2026:
the child benefit rate for the eldest child will increase from £26.05 to £27.05 per week;
the child benefit rate for other children will increase from £17.25 to £17.90 per week;
guardian’s allowance will increase from £22.10 to £22.95 per week.
I have determined that there will be no need for changes to tax credits rates in the tax year 2026-27, as there are no tax credits awards after 5 April 2025. The new rates will apply across the United Kingdom. I will deposit the full list of these rates in the House Libraries shortly.
[HCWS1100]