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Parents receiving Child Benefit from HM Revenue and Customs (HMRC) are being advised of a significant update to their payment schedule this month, along with an urgent deadline for those with teenage children.
Due to the summer bank holiday on Monday, August 25, 2025, HMRC has confirmed that Child Benefit payments, along with other Department for Work and Pensions (DWP) benefits, will be made early. Claimants who would normally receive their payment on Monday will instead find the money in their bank accounts on the preceding working day, which is Friday, August 22.
While the amount of the payment will remain the same, personal finance experts are warning that the early arrival of funds could present a budgeting challenge for families, especially amidst the ongoing cost-of-living crisis. Recipients should plan carefully to ensure the money lasts until their next scheduled payment date.
Crucial Deadline for Parents of Teenagers
In a separate but equally important announcement, HMRC is reminding parents of the impending August 31, 2025, deadline to extend their Child Benefit claim for children aged 16 to 19.
Letters have been sent to eligible parents, but those who fail to act by the end of the month will see their payments automatically stop on or after their child's 16th birthday. Continuing the claim, provided the child remains in approved education or training, could provide a financial boost of up to £1,354.60 a year for an eldest or only child, and up to £897 a year for each additional child, based on the new rates for the 2025/2026 tax year which took effect in April. This increase is part of a 1.7% rise in Child Benefit rates.
Parents can extend their claim quickly and easily through the HMRC app or via the digital service on the GOV.UK website.
Child Trust Funds and the High-Income Charge
The updated information also includes a reminder for teenagers turning 16 about their Child Trust Fund savings. These tax-free accounts, set up for children born between September 1, 2002, and January 2, 2011, can now be taken control of by the account holder. The funds can be withdrawn once the teenager turns 18. For those who do not know their provider, a free online tool is available on GOV.UK to help them locate their account.
Furthermore, changes to the High-Income Child Benefit Charge (HICBC) are on the horizon. Starting in the summer of 2025, individuals earning between £60,000 and £80,000 who are affected by the HICBC will be able to pay the charge through their PAYE tax code. This change is intended to simplify the process and, in many cases, will remove the need for affected individuals to complete a Self-Assessment tax return.
The DWP has also confirmed the early payment policy applies to other benefits, with the remaining bank holidays for 2025 falling on Christmas Day and Boxing Day. For those who may be impacted by these upcoming holidays, the same rule of an early payment on the preceding working day will apply.
