Cost of Living Support 2025: As the cost of living continues to rise in 2025, many families across the UK are facing financial pressure. Groceries, bills, childcare, and other essentials are becoming increasingly expensive, but there is vital help available—if people know where to look. One of the most overlooked forms of financial aid is Child Benefit, a government-provided payment to help families with the costs of raising children.
Despite its importance, a surprising number of households are not claiming what they are entitled to. Over 214,000 families could be missing out on up to £2,200 in Cost of Living support 2025 because they are unaware of their eligibility or previously opted out due to outdated income thresholds. With the income cap recently raised and Child Benefit amounts increased, now is the perfect time to revisit this benefit and ensure you don’t miss out.
Cost of Living Support 2025
The Cost of Living support 2025 includes a variety of schemes and payments, and Child Benefit is one of the most consistent and reliable options for families. Available to parents and guardians responsible for a child under 16 (or under 20 if still in education or training), this payment is tax-free, monthly, and can be claimed for multiple children.
From May 2025, Child Benefit payments have been increased slightly to account for inflation. Parents can now receive £26.05 per week for their first child and £17.25 per week for each additional child. Over the course of a year, this totals £2,200 or more, depending on family size. This steady support helps with day-to-day expenses like food, clothing, and household bills, especially during times of economic stress.
Overview: Key Information on Child Benefit
| Category | Details |
| Weekly Rate (First Child) | £26.05 (from May 2025) |
| Weekly Rate (Additional Child) | £17.25 |
| Annual Total (2 Children) | Approx. £2,252 |
| Eligibility Age | Under 16, or under 20 if in education/training |
| High Income Threshold (HICBC) | Increased to £60,000 |
| Backdate Limit | Up to 3 months from date of application |
| Application Platform | Online via HMRC website |
| Additional Benefits | National Insurance credits, NI number for child at age 16 |
| Opt-Out Option | Yes, especially for high earners |
Why Families Miss Out on Child Benefit
One of the biggest reasons families miss out on Child Benefit is confusion around the High Income Child Benefit Charge (HICBC). Introduced in past years, this rule required those earning over a certain amount to pay back part or all of the benefit. Many families, to avoid paperwork or overpayment, simply opted out.
However, as of 2025, the income threshold has been raised to £60,000, making many families newly eligible. For households with a joint income below this amount, claiming Child Benefit no longer results in the same financial complications it once did. Still, many people are unaware that the rules have changed or assume they still don’t qualify.
Another key reason people miss out is a lack of awareness. Data obtained at the end of 2024 shows that over 214,000 eligible families haven’t claimed Child Benefit, often because they didn’t realise they could or were unsure how to apply.
Who Can Apply for Child Benefit?
You may be eligible to apply for Child Benefit if you are:
- The parent or guardian of a child under 16, or
- The guardian of a young person under 20 who is still in approved education or training.
There is no limit to how many children you can claim for, and payments continue so long as the child remains in education or training and meets the age requirement.
Even if your child was born outside the UK or has been adopted, you can still apply, although some additional documentation may be required.
Other Benefits of Claiming Child Benefit
Claiming Child Benefit provides more than just weekly payments. It can also contribute toward your future by giving you National Insurance credits, which count toward your State Pension. This is particularly helpful for parents who are not working or are on low incomes.
Additionally, when your child turns 16, they will automatically receive a National Insurance number, making it easier for them to apply for jobs, student loans, and government services in the future.
How to Apply for Child Benefit
Applying for Child Benefit is straightforward and can be done online via the official HMRC website. If your child’s birth was registered in the UK, you can complete the process entirely online. If not, you may need to send documents through the post.
Steps to apply:
- Visit the HMRC website and access the Child Benefit section.
- Fill out the online form with your and your child’s details.
- Submit any required documents (only if applicable).
- Wait for confirmation and begin receiving payments.
If your child is already over three months old, you can backdate your claim up to three months to recover missed payments.
New Payment Rates for 2025
Starting from May 2025, Child Benefit rates have increased by 1.7% in response to inflation. The new weekly payments are:
- £26.05 for the eldest or only child
- £17.25 for each additional child
Payments are made every four weeks directly into your bank account. For families already receiving Child Benefit, no action is needed to receive the updated amounts.
If you’ve recently moved or changed bank accounts, it’s essential to update your information through HMRC’s GOV.UK portal or app to avoid delays.
Why You Shouldn’t Delay
With many families facing continued financial uncertainty, every bit of support helps. Child Benefit is a key part of Cost of Living support 2025, yet too many families are not claiming it. Whether you’ve never applied, previously opted out due to income, or are simply unsure about eligibility—it’s worth checking again.
By claiming Child Benefit:
- You receive up to £2,200 per year
- You gain valuable pension credits
- You help secure your child’s future documentation
FAQs
Who is eligible for Child Benefit in the UK?
Anyone responsible for a child under 16, or under 20 if in approved education or training, can apply.
How much is Child Benefit in 2025?
From May 2025: £26.05 per week for the first child, £17.25 for each additional child.
Can I backdate a Child Benefit claim?
Yes, you can claim up to three months of missed payments.
What is the High Income Child Benefit Charge (HICBC)?
It applies to those earning over £60,000. If your income is under this limit, you may now qualify again.
How do I apply?
Visit the official HMRC website and complete the application form online.
