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 2027/28.

I have decided to increase Child Benefit rates in line with the Consumer Price Index (CPI) for the year to September 2026, which is 3.5%. Guardian’s Allowance will also increase by the same rate. This means that, from 12 April 2027:

• the Child Benefit rate for the eldest child will increase from £27.05 to £28.00 per week;
• the Child Benefit rate for other children will increase from £17.90 to £18.55 per week;
• Guardian’s Allowance will increase from £22.95 to £23.75 per week.

I have determined that there will be no need for changes to tax credits rates in the tax year 2027/28, as there are 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.