Should I keep claiming Child Benefit if it is all clawed back by the charge?

Full answer

When the higher earner's adjusted net income reaches GBP 80,000, the High Income Child Benefit Charge reclaims 100% of the Child Benefit, so financially the payment and the charge cancel out. Many families wrongly assume there is then no point claiming, but there is an important reason to register anyway. A parent who claims Child Benefit and is not working, or earns too little to pay National Insurance, receives National Insurance credits automatically while caring for a child under 12. These credits count towards the qualifying years needed for the full new State Pension, which is GBP 241.30 a week (about GBP 12,548 a year) for 2026/27 and normally needs around 35 qualifying years. Missing years can permanently reduce your State Pension, so the credits can be worth far more over a lifetime than the Child Benefit itself. The practical solution is to complete the Child Benefit claim form but tick the option to claim without receiving the payments. That way the higher earner avoids having to register for Self Assessment purely to pay the charge, while the at-home parent still builds State Pension entitlement. Alternatively, you can receive the payments and pay the charge through Self Assessment, or reduce your adjusted net income below GBP 60,000 using pension contributions or Gift Aid so that you keep some or all of the benefit. The credits are only awarded if a claim exists, so doing nothing can quietly cost the carer State Pension years. Use the State Pension Forecast calculator to check your record, and manage your claim on GOV.UK.

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More answers

• What is the High Income Child Benefit Charge?
• How many NI years do I need for a full UK State Pension?