Millions of families who claim Child Benefit will see their payments automatically increase next year, after Chancellor Rachel Reeves confirmed how much benefit payments will rise by last week.

Benefits including Child Benefits, Universal Credit and Personal Independence Payments (PIP) will increase by 1.7 per cent next April, in line with inflation figures from September.

Currently, Child Benefit is worth £25.60 a week for the eldest or only child, and £16.95 a week for each younger child after that.

With the 1.7 per cent increase being confirmed, from April 2025 Child Benefit will be worth £26.05 a week for the eldest or only child, and £17.25 for younger children.

There is no limit to how many children families can claim Child Benefits for.

Families with ongoing claims do not need to contact HMRC, as the increased benefit payment will continue to be paid directly into their bank accounts.

Anyone who needs to update their personal details, such as a change of bank account or address, can do so using the HMRC app or online at GOV.UK.

Parents of newborns can also backdate their Child Benefit claims by up to three months.

State pension payments set to increase next year

Rachel Reeves promised an extra £470 for pensioners next year, as she maintained the Government’s commitment to the pension triple lock.

The triple lock guarantees an increase in pensions in line with average earnings, inflation or 2.5%, whichever is highest.

Making the announcement the Chancellor said: “This commitment means that while working-age benefits will be uprated in line with CPI at 1.7%, the basic and new state pension will be uprated by 4.1% in 2025-26.

“This means that over 12 million pensioners will gain up to £470 next year.”

She added: “The pension credit standard minimum guarantee will also rise by 4.1% from around £11,400 per year to around £11,850 for a single pensioner.”