Raising children in the UK comes with significant costs, but a range of government benefits and schemes can help ease the financial burden. From Child Benefit payments to free childcare hours, many families are entitled to support they aren’t claiming. This guide covers every major family benefit available in the UK and shows how they can add up to thousands of pounds per year.
Child Benefit
Child Benefit is a universal payment available to most parents and guardians. It’s not means-tested, meaning you receive it regardless of your income — though a tax charge applies if you or your partner earns over £60,000.
Current Rates (2024/25)
| Child | Weekly Amount | Annual Amount |
|---|---|---|
| First child | £26.05 | £1,354.60 |
| Each additional child | £17.25 | £897.00 |
For a family with three children, that’s £60.55 per week or £3,148.60 per year.
High Income Child Benefit Charge
If you or your partner earns over £60,000 per year, you’ll pay a tax charge on the Child Benefit through Self Assessment. The charge equals 1% of the benefit for every £200 of income above £60,000, until it reaches 100% at £80,000.
Even if you’re affected by the charge, it can still be worth claiming Child Benefit. It protects your National Insurance record (important for state pension), and your partner can still receive the benefit while you pay the charge. The key is to register for Self Assessment if you need to.
Universal Credit
Universal Credit is the main means-tested benefit for working-age families on a low income. It has replaced six legacy benefits:
- Child Tax Credit
- Working Tax Credit
- Income Support
- Housing Benefit
- Income-based Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
How It Works
Universal Credit is paid monthly (or twice monthly in Scotland) and consists of a standard allowance plus additional elements:
| Element | Monthly Amount (2024/25, single, 25+) |
|---|---|
| Standard allowance | £311.68 |
| Child element (per child) | £287.92 |
| Limited capability for work | £156.11 |
| Housing costs element | Varies by situation |
| Childcare costs element | Up to 85% of costs, max £646 |
Child Element
The child element is the key component for families. It’s currently £287.92 per month per child (or £333.33 for children born after 6 April 2017). This continues until your youngest child turns 15, or 16 if they’re in approved education or training.
The two-child limit means you can only receive the child element for up to two children, unless exemptions apply (such as a multiple birth or a child conceived as a result of rape).
Work Allowances
If you have children or a limited capability for work, you can earn a certain amount before the Universal Credit taper kicks in. This is called a work allowance. After that, your payment reduces by 55p for every £1 you earn above the allowance.
Tax-Free Childcare
Tax-Free Childcare is a government scheme that helps working parents with childcare costs. The government tops up your childcare account with 20p for every 80p you pay — effectively giving you £1 for every £1 you spend, up to a limit.
How It Works
- Open a Tax-Free Childcare account on the GOV.UK website
- For every £80 you pay in, the government adds £20
- Maximum government contribution: £2,000 per child per year
- Maximum childcare you can pay for: £10,000 per child per year
Eligibility
Both parents (or the single parent in a lone-parent household) must be:
- Working and earning at least the equivalent of 16 hours at the National Living Wage per week
- Not receiving Tax-Free Childcare alongside childcare vouchers from an employer
Each parent can earn up to £100,000 per year. If either parent earns more, you’re not eligible.
Free Childcare
The government provides free childcare hours for children of working parents. These are delivered as “unded” hours, meaning the government pays the childcare provider directly.
Current Entitlements
| Age | Hours per Week | Weeks per Year | Total Annual Hours |
|---|---|---|---|
| 2-4 years (all families) | 15 | 38 | 570 |
| 3-4 years (both parents working) | 30 | 38 | 1,140 |
| Under 2 (both parents working) | 15 | 38 | 570 |
The 15 hours for 2-year-olds is available to all families, regardless of income. The 30 hours for 3-4 year olds requires both parents to work (or be in education/training for lone parents).
Expansion
The government is expanding free childcare to under-2s. From 2024, working parents of 2-year-olds can access 15 hours per week, and from 2025 this extends to children from 9 months old. Full details and timelines vary, so check your eligibility on the Childcare Choices website.
Wrap-Around Care
Some councils also offer 30 hours of wrap-around care (before and after school) for primary school children whose parents are working. This is separate from the standard free hours.
Healthy Start
Healthy Start is a scheme providing free vitamins and healthy food to pregnant women, new mothers, and families with young children on benefits.
What You Get
- Free vouchers each week to spend on milk, fruit, vegetables, and infant formula
- Free vitamins (Healthy Start vitamins for women and children)
Eligibility
You qualify if you’re:
- Pregnant or have a child under 4
- Receiving Universal Credit, Child Tax Credit, Income Support, or Pension Credit
- Aged 10-17 and pregnant
The scheme is automatically available if you’re already on qualifying benefits. You apply online or by phone through the Healthy Start helpline.
Free School Meals
All children in Reception, Year 1, and Year 2 in England receive free school meals, regardless of family income. From Year 3 onwards, eligibility depends on your benefits.
Eligibility Criteria
Your child qualifies for free school meals if you receive:
- Universal Credit (and your net earned income is under £7,400 per year)
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Support under Part VI of the Immigration and Asylum Act 1999
- The guarantee element of Pension Credit
- Child Tax Credit (provided you’re not also entitled to Working Tax Credit and have an annual gross income of no more than £16,190)
Even if you don’t qualify for free meals, registering helps your child’s school receive additional Pupil Premium funding.
Maternity and Paternity Pay
Working parents are entitled to statutory pay during pregnancy and after birth. For detailed guidance, see our Parental Leave Pay Guide. The key entitlements are:
- Statutory Maternity Pay (SMP): 90% of average weekly earnings for 6 weeks, then a flat rate for 33 weeks
- Statutory Paternity Pay (SPP): Flat rate for up to 2 weeks
- Shared Parental Pay: Up to 37 weeks at the flat rate, shared between parents
- Maternity Allowance: For those not qualifying for SMP, 90% of average weekly earnings for 9 weeks, then flat rate
Worked Example: Family of Four
Consider a couple with two children (aged 3 and 5). Both parents work. Here’s how the benefits stack up:
| Benefit | Annual Amount |
|---|---|
| Child Benefit (first + second child) | £2,252 |
| Tax-Free Childcare (2 children × £2,000 max) | £4,000 |
| Universal Credit child element (2 × £287.92 × 12) | £6,540 |
| Free childcare hours (30 hrs × 38 weeks × 2 children) | £0 (funded by government) |
| Total annual benefits | £12,792 |
This family receives over £12,700 per year in combined benefits and support. The free childcare hours alone would cost thousands if paid privately.
Tips for Families
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Use a benefits calculator. Turn2Us, entitledto, and the GOV.UK calculator can show you exactly what you’re entitled to based on your specific circumstances.
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Apply for everything you’re eligible for. Many families claim Child Benefit but miss out on Tax-Free Childcare, Healthy Start, or Free School Meals. Check each scheme separately.
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Report changes promptly. Changes in income, household composition, or working hours can affect your entitlement. Report changes to avoid overpayments or missed payments.
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Check annually. The rules and thresholds change each tax year. What you were entitled to last year may differ this year.
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Get help from Citizens Advice. If you’re struggling to navigate the system, Citizens Advice offers free guidance on benefits and can help with applications and appeals.
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Don’t assume you earn too much. Many middle-income families qualify for Tax-Free Childcare and free childcare hours. Use the calculator before assuming you’re not eligible.
Useful Resources
- GOV.UK Child Benefit — Claim Child Benefit and check rates
- GOV.UK Universal Credit — Apply and manage your claim
- Childcare Choices — Free childcare hours and Tax-Free Childcare
- Turn2Us Benefits Calculator — Check what you’re entitled to
- Healthy Start — Apply for free food vouchers
- Citizens Advice — Free help with benefits and entitlements