Tax Credit, Child Benefit and Guardian's Allowance Rates

The Tax Credits Act 2002 and the Social Security Administration Act 1992 place a statutory duty on His Majesty’s Treasury to review the rates of tax credits and 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 2025-26.

I have decided to increase child benefit rates in line with the consumer prices index for the year to September 2024, which is 1.7%. Guardian’s allowance will also increase by the same rate. This means that, from 7 April 2025:

The child benefit rate for the eldest child will increase from £25.60 to £26.05 per week;

The child benefit rate for other children will increase from £16.95 to £17.25 per week;

Guardian’s allowance will increase from £21.75 to £22.10 per week.

I have determined that there will be no need for changes to tax credits rates in the tax year 2025-26, as there will be 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.

[HCWS174]