The Child Benefit and Guardian's Allowance Up-rating Order 2025

Published: Fri 7th Mar 25

This order increases Child Benefit and Guardian's Allowance rates for the 2025-26 tax year in Great Britain and Northern Ireland.

Following a review showing increased prices, the Treasury amended relevant regulations to raise the weekly Child Benefit rates to £26.05 (enhanced rate) and £17.25 (other cases), and the Guardian's Allowance rate to £22.10.

The changes are legally based on existing Social Security Administration Acts and took effect April 7, 2025.

Arguments For

  • Intended benefits: The uprating of Child Benefit and Guardian's Allowance directly addresses the rising cost of living, providing crucial financial support to families and guardians. This is inline with the government's stated commitment to supporting vulnerable families.

  • Evidence cited: The order cites a review showing an increase in the general price level, justifying the uprating to maintain the real value of benefits.

  • Implementation methods: The changes are implemented through straightforward amendments to existing legislation, ensuring a swift and efficient process.

  • Legal/historical basis: The order is based on powers conferred by sections 150 and 132 of the relevant Social Security Administration Acts, establishing clear legal authority for the increases.

Arguments Against

  • Potential impacts: The increased expenditure on benefits could impact the government’s fiscal budget and potentially lead to trade-offs in other areas of public spending.

  • Implementation challenges: While seemingly simple, ensuring accurate and timely processing of the increased benefit payments across different systems in Great Britain and Northern Ireland presents potential logistical difficulties.

  • Alternative approaches: Targeted financial assistance focused on low-income families may achieve similar outcomes with a potentially lower cost to the government.

  • Unintended effects: The uprating might not fully compensate for the cost of living increase, leaving some families with insufficient financial support. The impact also may vary regionally depending on local economic conditions.

Following a review of the sums specified in section 150(1)(a)(i) and (1)(i) of the Social Security Administration Act 19921 in the tax year 2024-25, the Treasury have determined that the general level of prices in Great Britain is greater at the end of the period under review than it was at the beginning. This Order makes provision under section 150 of the Social Security Administration Act 1992 and makes corresponding provision for Northern Ireland in accordance with section 132(1) of the Social Security Administration (Northern Ireland) Act 19922.A draft of this Order was laid before Parliament in accordance with sections 150(2) and 190(1) of the Social Security Administration Act 19923, and section 166(10A) of the Social Security Administration (Northern Ireland) Act 19924, and approved by a resolution of each House of Parliament.The Treasury make this Order in exercise of the powers conferred by section 150(2), (5), (9) and (10)(a)(i) of the Social Security Administration Act 19925, and section 132(1) of the Social Security Administration (Northern Ireland) Act 1992 and now exercisable by them6.

This Order may be cited as the Child Benefit and Guardian's Allowance Up-rating Order 2025 and comes into force on 7th April 2025.

Regulation 2(1) (rate of child benefit) of the Child Benefit (Rates) Regulations 20067 is amended as follows—

(a)

in sub-paragraph (a) (enhanced rate) for “£25.60” substitute “£26.05”; and

(b)

in sub-paragraph (b) (other cases) for “£16.95” substitute “£17.25”.

In paragraph 5 of Part 3 of Schedule 4 to the Social Security Contributions and Benefits Act 1992 (weekly rate of guardian’s allowance)8 for “£21.75” substitute “£22.10”.

In paragraph 5 of Part 3 of Schedule 4 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (weekly rate of guardian’s allowance)9 for “£21.75” substitute “£22.10”.

This Order amends the Child Benefit (Rates) Regulations 2006 (S.I. 2006/965); the Social Security Contributions and Benefits Act 1992 (c. 4); and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7).Article 2 increases the weekly rate of child benefit from £25.60 to £26.05 (enhanced rate) and from £16.95 to £17.25 (other cases).Articles 3 and 4 increase the weekly rate of guardian’s allowance from £21.75 to £22.10.The increases in the rates of child benefit and guardian’s allowance take effect from the week beginning with the first Monday in the tax year 2025-26.In accordance with section 150(8) of the Social Security Administration Act 1992 (c. 5), a copy of the report by the Government Actuary giving their opinion on the likely effect on the National Insurance Fund of the making of this Order (in relation to the increases made to guardian’s allowance) was laid before Parliament with the draft of this Order.A full impact assessment has not been produced for this instrument as no impact on the private, voluntary, or public sectors is foreseen.

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