Child Benefit — Higher Income Threshold Now £60k

The High Income Child Benefit Charge (HICBC) operates with the thresholds updated in April 2024, which remain in effect for 2025/26. The charge now begins when the higher-earning parent's adjusted net income exceeds £60,000 (previously £50,000) and reaches 100% of the Child Benefit received at £80,000 (previously £60,000). This widened band means that the taper is gentler — families lose 1% of their Child Benefit for every £200 of income above £60,000, compared to the old rate of 1% per £100.

For 2025/26, Child Benefit rates are £26.05 per week for the eldest or only child and £17.25 per week for each subsequent child. For a two-child family, this amounts to £2,251.60 per year. With the new thresholds, a family with two children where the higher earner has adjusted net income of £70,000 would repay approximately 50% of their Child Benefit through the HICBC — around £1,126 — rather than losing the full amount as they would have under the old rules.

It is important that families continue to claim Child Benefit even if they expect to repay some or all of it through the HICBC. Claiming Child Benefit protects the non-working or lower-earning parent's National Insurance record, which can be critical for State Pension entitlement. Parents can opt to receive the payments and repay via self-assessment, or they can elect not to receive the payments while still maintaining the NI credit by filling in the Child Benefit claim form. For those near the £60k–£80k band, pension contributions are one mechanism that can reduce adjusted net income, which may in turn affect the amount of HICBC payable.