The HM Revenue and Customs (HMRC) has rolled out updated rules for child benefit eligibility, altering the income thresholds and repayment rates. These changes aim to ease the burden on many families and ensure fairer access to benefit payments. In this article, we break down what the new rules are — who’s affected, how much benefit you might receive — and what you should do to stay eligible.
What Are the New HMRC Child Benefit Rules?
Raised Income Thresholds
Under the previous regulations, child benefit started being reduced when an individual’s income exceeded £50,000. After crossing £60,000, the benefit was fully withdrawn.
Now, from the latest update in 2025, the threshold where the benefit starts to taper has been increased to £60,000 per year. Full withdrawal of benefit will now apply only when the individual’s income reaches £80,000 per year.
What That Means for Families
Families who earn between £60,000 and £80,000 will now gradually lose benefits — rather than losing all benefits at £60,000. This gives many more parents a chance to retain partial or full child benefit.
For those earning below £60,000, the benefit stays untouched — meaning full child benefit eligibility returns to a larger group of families.
These changes could save many households a significant amount annually compared to the older rules.
Updated Payment Rates
As of 2025, benefit payments from HMRC are:
- £26.05 per week for the first or only child (or the eldest in a multiple birth)
- £17.25 per week for each additional child
These amounts remain the base rates; how much you get depends on your adjusted income under the new thresholds.
Who Gains the Most from These Changes?
Middle-income families — especially those earning between £50,000–£70,000 — benefit significantly because they may regain or retain more support than before.
Parents who previously opted out — some may now reconsider applying again given the higher thresholds and more favourable conditions.
Families near the old cutoff — a small increase in income could previously mean losing all benefits; now, they will lose benefits gradually, reducing the “cliff-edge” effect.
What You Should Do Now
- Check your adjusted net income — if you earn under £60,000, you are now eligible for full child benefit.
- If you opted out earlier, consider reapplying — you may now get benefits you previously lost.
- Keep track if your income rises — if it falls between £60,000–£80,000, expect tapered benefits; beyond £80,000 benefits may cease.
- Stay updated with HMRC communications — rules and thresholds may change again, so make sure HMRC has your correct details.
The recent announcement of a £500 bank deduction for UK pensioners has raised concerns among many. £500 Bank Deduction for UK Pensioners Confirmed — Everything You Need to Know highlights that pensioners will experience this deduction from their bank accounts as part of a new financial adjustment. This change is aimed at addressing pension-related payment updates and aligning with new financial regulations. It’s important for pensioners to understand how these deductions will impact their income and plan accordingly for any adjustments.
Conclusion
The 2025 reforms by HMRC on child benefit — raising threshold levels and extending the income range before full withdrawal — represent a meaningful improvement for many UK families. By increasing the threshold to £60,000 and shifting full withdrawal to £80,000, HMRC has widened the net of eligible parents. Families earning in the middle or lower range stand to regain more benefits, while those near previous cutoff points get a more gradual phase‑out. If you had opted out in the past or stopped claiming due to income limits, now may be the right time to reconsider. Make sure to assess your income, update claims if necessary, and stay informed about HMRC’s latest guidelines.
Frequently Asked Questions
Q: At what income level will child benefit now start to reduce?
Benefit will start tapering when an individual’s adjusted net income exceeds £60,000 per year.
Q: When does child benefit get fully removed under new rules?
Full removal of benefit applies when income reaches £80,000 per year.
Q: What are the weekly rates for child benefit now?
As of 2025, it is £26.05 per week for the first (or only) child, and £17.25 per week for each additional child.