Child Benefit is a universal payment for parents — but if you or your partner earns over £60,000, a tax charge claws some or all of it back. This is the High Income Child Benefit Charge (HICBC). Understanding how it works can help you decide whether to keep claiming, and what strategies can reduce the charge.
How much is Child Benefit?
For 2026/27, Child Benefit pays:
- £26.05/week for your eldest (or only) child — £1,354.60/year
- £17.25/week for each additional child — £897.00/year
A family with two children receives £2,251.60/year. This is paid regardless of your income — but the tax charge may claw it back.
When does the tax charge apply?
The HICBC applies when either parent (or partner living with you) has an adjusted net income over £60,000. It does not matter whose name the claim is in — the charge is levied on the higher earner.
The charge works on a sliding scale:
- Below £60,000: no charge — keep all Child Benefit
- £60,000–£80,000: partial charge — 1% of the benefit for every £200 of income above £60,000
- Above £80,000: full charge — you effectively repay 100% of the Child Benefit received
How is the charge calculated?
The charge is calculated as a percentage of the Child Benefit received in the tax year. For every £200 of income above £60,000, you repay 1% of the total benefit received.
Example: income of £70,000, two children (£2,251.60/year in benefit):
- Income above £60,000: £10,000
- Number of £200 chunks: £10,000 ÷ £200 = 50
- Charge: 50% × £2,251.60 = £1,125.80
- Net benefit retained: £1,125.80 (approximately £94/month)
Should I stop claiming?
Even if you would repay 100% of the benefit, there are reasons to keep claiming:
- National Insurance credits. The parent who claims Child Benefit (and is not working or earning below the NI threshold) receives NI credits towards their State Pension. If you stop claiming, you can opt out of payment but still register the claim to protect NI credits.
- Automatic National Insurance number. Children are automatically issued an NI number at 16 if Child Benefit has been claimed for them.
- Income might fluctuate. If the higher earner's income drops below £60,000 in a future year (job change, maternity, sabbatical), you will receive the full benefit without needing to re-register.
How to reduce or avoid the charge
- Pension contributions — contributions to a pension (including salary sacrifice) reduce your adjusted net income. If you earn £65,000 and contribute £5,000 to a pension, your adjusted net income is £60,000 and the HICBC is eliminated entirely.
- Gift Aid donations — charitable donations under Gift Aid also reduce adjusted net income. A £2,000 Gift Aid donation reduces your adjusted net income by £2,000.
- Salary sacrifice for childcare, EVs, or bikes — these all reduce gross pay and therefore adjusted net income.
The pension route is particularly powerful for parents in the £60K– £80K range. Every £200 contributed to a pension not only gets tax relief but also restores 1% of your Child Benefit — a double benefit.
Reporting and paying the charge
If you are liable for the HICBC, you must file a Self-Assessment tax return — even if all your income is through PAYE. The charge is paid through Self-Assessment, due by 31 January following the end of the tax year.
This catches many people off guard. You may have never filed a tax return before, but the moment either partner exceeds £60,000 and Child Benefit is being claimed, a return is required.
See the impact on your finances
Use the income tax calculator to see your take-home pay at different salary levels, and the salary sacrifice calculator to model how pension contributions can reduce your adjusted net income below the £60,000 threshold.