Social Security
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 Price Index (CPI) 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.