UK Child Benefit High-Income Charge 2025 — £60k Tapering
The description on this page previously said the charge reduces Child Benefit by "1% per £100" of income above the threshold — the correct figure is 1% per £200, exactly half that rate.
How the taper actually works
The High Income Child Benefit Charge (HICBC) claws back Child Benefit once the higher earner in a household has adjusted net income above £60,000 (raised from £50,000 with effect from 6 April 2024). For every £200 of income above £60,000, 1% of the Child Benefit received is charged back as tax. At £80,000, the charge equals 100% of the Child Benefit — the whole amount is effectively withdrawn, and the taper simply cannot go further from that point.
It is individual income, not household income
The charge is based on whichever partner in the household has the higher individual income — not the household's combined income. This produces a well-known quirk: a household where one partner earns £65,000 and the other earns nothing faces the charge, while a household where both partners earn £55,000 each (a combined £110,000 — far more than the first household) faces no charge at all, because neither individual crosses the £60,000 threshold. A move to assess the charge on household income, planned for around April 2026, was subsequently not proceeded with — the individual-income basis remains in place.
Worked example
A family has one earner on £70,000 and claims Child Benefit for two children: £27.05 a week for the eldest (£1,406.60 a year) plus £17.90 a week for the second (£930.80 a year), a combined £2,337.40 for the year at 2026/27 rates.
- Income above the £60,000 threshold: £70,000 − £60,000 = £10,000
- Number of complete £200 blocks in £10,000: £10,000 ÷ £200 = 50
- Charge: 50 × 1% = 50% of the Child Benefit received
- HICBC charge due: £2,337.40 × 50% = £1,168.70
The family keeps half their Child Benefit in real terms — they still receive the full amount during the year, but the higher earner repays half of it as an Income Tax charge through Self Assessment.
Why some families opt out of receiving the payments instead
Because the charge is collected via Self Assessment, a family where the higher earner is well above £80,000 (and so would repay 100% of the benefit anyway) can elect not to receive the Child Benefit payments at all, while still submitting the claim form. This matters because the claim itself — not just the payment — is what protects the claiming parent's National Insurance credits towards their State Pension, and registers the child for a National Insurance number in due course. Opting out of the money without also making the claim gives up those protections for no reason.
FAQ
Q: If my partner and I both earn £55,000, do we face the charge? A: No — the charge looks at each individual's income separately, and neither of you crosses the £60,000 threshold, even though your combined household income is £110,000.
Q: Is there any point claiming Child Benefit if my income means I'll repay all of it? A: Yes — claiming (even if you then opt out of receiving the payments) protects the claiming parent's National Insurance credits and registers the child for their own National Insurance number, regardless of the charge.
Q: Did the government move to a household-income basis for this charge? A: A reform to assess the charge on household rather than individual income was announced for consultation, targeted at around April 2026, but the government subsequently did not proceed with it — the charge remains based on individual income.
Sources
Figures verified against HMRC and parliamentary sources as of 30 July 2026:
- House of Commons Library — "The High Income Child Benefit Charge" (CBP-8631) (£60,000/£80,000 thresholds effective 6 April 2024, 1% per £200 taper mechanism, individual- not household-income basis, cancellation of the planned household-income reform)
- gov.uk — High Income Child Benefit Charge guidance (Self Assessment collection mechanism, option to claim without receiving payments, National Insurance credit protection from claiming)