HMRC hands 7 million households £1,406 extra benefits cash from April 6

HM Revenue and Customs (HMRC) is handing nearly seven million households an extra £1,406 Child Benefit boost thanks to an uplift from Monday, April 6.

The government is boosting child benefit payment rates for the 2026/27 tax year to help support families battling childcare costs. Child benefit can be claimed by parents or carers who are responsible for raising a child under the age of 16, or under 20 if they stay in approved education or training. The benefit is paid every four weeks and as of Monday, April 6 it now gives parents £27.05 per week for their first child, and £17.90 for any additional children - an annual increase of £52 and £33.80 respectively.

Under the new payment rates, it means parents with one child can get £1,406.60 per year, while those with two children can get an additional £930.80, giving them £2,337.40 in total annually. But there’s no limit - other than the Benefit Cap - which means if you have three or four children, you could get even more.

Child benefit is usually paid every four weeks and will automatically be paid into a bank account, so if you’re already claiming it you don’t need to do anything as the new rates will be applied from April 6.

According to latest HMRC figures, more than 6.9 million families across the UK receive child benefit payments, but only 72% claimed it in their baby’s first year.

As child benefit claims can only be backdated for up to three months from the date the claim is received by HMRC, it means thousands of families are missing out on vital financial support.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Looking after a child can be expensive and especially a newborn baby. It takes a few minutes to claim child benefit via the app and doing so as soon as you can after your baby is born will ensure you don’t miss out on vital financial support.”

Child benefit not only helps with childcare costs, it can also boost your state pension payments too, as you’ll get National Insurance credits automatically just by claiming it and if your child is under 12.

These credits count towards your state pension and can help to plug any gaps in your National Insurance record which can affect how much you’ll get once you state claiming your pension in the future.

You can submit a claim for child benefit 48 hours after you’ve registered the birth of your child, or once a child comes to live with you, and it can be backdated for up to three months from the date you make the claim.

Only one person can claim child benefit for a child, so it’s up to parents and carers to decide who is the best person to claim it. Whoever makes the claim will get the National Insurance credits towards their state pension.

Parents in receipt of child benefit payments, or who are making a new claim where either they or their partner have income of more than £60,000 a year, may have to pay the High Income Child Benefit Charge (HICBC).

Parents can use the HICBC PAYE digital service to pay the charge through their PAYE tax code rather than completing a Self Assessment tax return, if they have no other reason to file a return.

Families who have previously opted out of child benefit payments can opt back in and restart their payments on the HMRC app or online.

A person living in a household subject to the HICBC will still receive National Insurance credits if they claim child benefit but choose to opt out of receiving payments.

Anna Sharkey from the Money and Pensions Service added: “Use MoneyHelper’s free Benefits Calculator if you think you, or someone you know, might be eligible for child benefit. The calculator will show you all the benefits you’re eligible for.

“Other MoneyHelper tools for new parents include the Baby Cost Calculator to help you budget when having a baby, and the Baby Money Timeline which gives you key dates to help you plan your finances.”