Child benefit provides financial support to parents or guardians of children under 16, or under 20 if they are in approved educational settings, helping to cover the costs associated with raising children.
Changes to the High Income Child Benefit Charge (HICBC), which affects higher earners, were implemented following the 2024 Spring Budget.
Previously, any family with one earner surpassing £50,000 faced a gradual reduction in Child Benefit, which stopped entirely for those earning £60,000.
As of 6 April, the threshold for HICBC has been raised to £60,000. Beyond this, a new tapered charge applies between £60,000 and £80,000, reducing the benefit by one per cent for every £200 earned over £60,000.
This revision has lifted the full charge for approximately 170,000 individuals, potentially making you eligible to claim if your income falls within this bracket.
The Government’s adjustment aims to alleviate financial pressure on middle-income families and promote broader access to Child Benefit by softening the penalties for higher income levels. Additionally, there are plans to move towards a household-based assessment system by April 2026, which would offer a more equitable evaluation by considering the total household income.
If your income exceeds £50,000 and you need to register or adjust your Child Benefit, you generally fall into one of two categories:
New claims – If you’re registering a child not previously claimed for, you can have benefits backdated for up to three months or from the child’s birthdate.
Existing claimants – If your income is within the new threshold, you should adjust your HICBC through Self-Assessment.
For further assistance with the HICBC or other related enquiries, feel free to reach out to our expert team.
