It’s important to be aware the change only applies to parents or guardians in Scotland. New Year’s Day on Thursday, January 1 is recognised as a bank holiday across the UK, however, the public holiday on Friday, January 2 also only applies in Scotland.
Parents in receipt of other benefits from the Department for Work and Pensions or Social Security Scotland, due a payment on either January 1 or 2, may receive it earlier this week. HMRC also recently confirmed the annual uprating for Child Benefit and Guardian’s Allowance. Child Benefits and Guardians Allowance payments will rise in line with the Consumer Price Index inflation rate for the year to September 2025, which was 3.8 per cent. This means that, from April 2026, the Child Benefit rate for the eldest child will increase from £26.05 to £27.05 per week, the rate for other children will increase from £17.25 to £17.90 per week. Guardian’s Allowance will increase from £22.10 to £22.95 per week. As the payments are typically paid every four weeks, this amounts to: Child Benefit, eldest child – £108.20 Child Benefit, additional children – £71.60 Guardian’s Allowance – £91.80 Working families are also being encouraged to sign up to Tax-Free Childcare to help with the upcoming school holidays over the festive season. The latest figures from HMRC show 34,255 families in Scotland received a savings boost in June. Paying childcare bills through a Tax-Free Childcare account can save working families up to £2,000 per year for each of their children up to the age of 11 or £4,000 per year up to the age of 16 if the child is disabled. Parents can use the scheme to help towards the cost of approved childcare whether that’s nursery for younger children, or for older children – wraparound or after school care clubs during term time or holiday clubs for the long summer holidays ahead. In June, the UK Government paid a total of £57.7 million in top-ups to Tax-Free Childcare accounts which means each family received, on average, more than £100 to be used towards their childcare bills. For every £8 deposited in a Tax-Free Childcare account, the UK Government tops it by £2, which means parents can receive up to £500 every three months towards paying for their childcare costs. Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused money in the account can be withdrawn at any time. HMRC said it takes just 20 minutes to apply online for a Tax-Free Childcare account . Once an account is opened, parents can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused money in the account can be withdrawn at any time. Families could be eligible for Tax-Free Childcare if they: Have a child or children aged 11 or under. They stop being eligible on September 1 after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until September 1 after their 16th birthday Earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average Each earn no more than £100,000 per annum Do not receive Universal Credit or childcare vouchers A full list of the eligibility criteria is available on GOV.UK here .
Social Security Scotland delivers five family payments which can help pay for extra school term expenses alongside everyday family costs like food, clothing and days out. Scottish Child Payment is a weekly payment of £27.15 for eligible families with children up to the age of 16 – the payment is worth £108.60 every month and is only available north of the border. Combined with Child Benefit payments from HMRC, parents could be due up to £212.20 each month in additional support over the current financial year. Child Benefit is a separate UK-wide payment worth £26.05 for the eldest or only child and is also paid every four weeks, amounting to £104.20.
The three Best Start Grant payments and Best Start Foods, also part of social security support, are designed to help families at key stages in their children’s early years, including during pregnancy. There is no cap on the number of children in one family who can receive these payments.
Best Start Grant Pregnancy and Baby Payment – one-off payment of up to £767.50 available after 24 weeks of pregnancy until a baby turns 6 months. Best Start Grant Early Learning Payment – one-off payment of £319.80 to help with the costs of early learning when a child is between two, and three years and six months. Best Start Grant School Age Payment – one-off payment of £319.80 to help with the costs of starting school available between June 1 and the last day in February in the year when a child is first old enough to start primary one. Best Start Foods – up to £43.20 every four weeks from pregnancy up to when a child turns three to help buy healthy food, milk and first infant formula.
Artwork by Jane Heaney