How does the High Income Child Benefit Charge work in 2026/27?

Full answer

The High Income Child Benefit Charge (HICBC) can catch families by surprise, particularly because it is assessed on the higher of the two parents' individual incomes rather than the household's combined income. **The 2026/27 thresholds** The charge starts once the higher-earning parent or partner's adjusted net income exceeds £60,000, and increases by 1% of the Child Benefit received for every £200 of income above that -- meaning it is fully clawed back once income reaches £80,000, at which point the family has effectively received no net benefit from claiming. **2026/27 Child Benefit rates** Child Benefit is £27.05 a week for the first or eldest child and £17.90 a week for each additional child in 2026/27 -- for one child, that is £1,406.60 a year; for two children, £2,337.40 a year. **Why it's based on individual, not household, income** A couple where each partner earns £55,000 (£110,000 combined) pays no HICBC at all, since neither individual exceeds £60,000 -- while a single-earner household with one partner earning £70,000 and the other not working (£70,000 combined) faces a substantial charge, despite having lower total household income. This asymmetry is a frequently criticised feature of the charge. **How the charge is collected** The charge is usually collected via Self Assessment -- the higher earner must register for Self Assessment (if not already registered) and declare the charge on their tax return, even if they are not the person who actually receives the Child Benefit payments. **Should you still claim Child Benefit?** Even if the charge will claw back all or most of the benefit, it is still usually worth formally claiming Child Benefit rather than opting out entirely, because claiming protects National Insurance credits toward the State Pension for the claiming parent (usually the one not working or earning less), which matters if that parent has gaps in their NI record. **Opting out of payment, not the claim** You can claim Child Benefit for the NI credit protection while opting OUT of actually receiving the payments, avoiding the need to pay back the charge via Self Assessment altogether -- this is often the simplest approach for households where the higher earner is well above the £80,000 threshold and would lose the benefit entirely anyway. **Worked example** A family with two children and a higher earner on £70,000 receives £2,337.40 in Child Benefit. Since £70,000 is £10,000 above the £60,000 threshold, the charge claws back 50% (10,000 ÷ 200 × 1% = 50%), meaning they repay £1,168.70 via Self Assessment, keeping roughly half the benefit net. **Practical tip** Pension contributions reduce adjusted net income for HICBC purposes, so increasing pension contributions can both reduce or eliminate the charge and boost retirement savings -- a salary sacrifice arrangement can be particularly effective for households just above the £60,000 threshold.

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