Answers · UK 2025/26

What is the High Income Child Benefit Charge in 2026/27?

The High Income Child Benefit Charge claws back Child Benefit from households where the higher earner's adjusted net income is between £60,000 and £80,000 a year, at a rate of 1% of the Child Benefit for every £200 of income above £60,000. Above £80,000, the charge equals 100% of the Child Benefit received, effectively cancelling it out entirely.

Last updated: 1 July 2026Last reviewed: 1 July 2026How we verify

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The High Income Child Benefit Charge (HICBC) is a tax charge, not a reduction applied automatically at the point of payment -- families keep receiving full Child Benefit, but the higher earner may need to pay some or all of it back through Self Assessment. **How the charge is calculated** If either partner in a household has adjusted net income (broadly, taxable income after certain deductions like pension contributions) between £60,000 and £80,000, the household starts to lose Child Benefit through the charge: 1% of the total Child Benefit received is clawed back for every £200 of income above £60,000. Once the higher earner's income reaches £80,000, the charge equals 100% of the Child Benefit paid, meaning the family effectively receives no net benefit at all (though they still physically receive the payments and then repay the equivalent amount as tax). **It is based on the HIGHER earner's individual income, not household income** A common source of confusion: HICBC looks at the income of whichever partner earns MORE, not the combined household income. A couple where one partner earns £90,000 and the other earns nothing faces the full charge (since the higher earner is well above £80,000), while a couple where both partners each earn £55,000 (a combined household income of £110,000, higher than the first couple's £90,000) faces NO charge at all, since neither individual exceeds the £60,000 threshold. **Who pays the charge** The charge is paid by whichever partner has the higher income, regardless of who actually claims the Child Benefit -- if the lower earner is the named claimant on the Child Benefit claim but their partner earns more, the HIGHER earner is the one who must declare the charge via Self Assessment, even if they never personally receive the Child Benefit payments. **Should you still claim Child Benefit if you know you will pay the charge in full?** Even households where the charge will claw back 100% of the Child Benefit are usually still better off formally CLAIMING Child Benefit (and then either paying the charge, or opting out of receiving the payments while keeping the claim registered), because claiming protects the claiming parent's National Insurance credits towards their State Pension, and ensures the child automatically receives a National Insurance number at 16 -- benefits that are lost if you never make a claim at all. **Opting out of payments while keeping the claim** HMRC allows you to register a Child Benefit claim (securing the NI credits and other non-cash benefits) while opting OUT of actually receiving the payments, avoiding the need to pay the charge back through Self Assessment each year -- this is often the simplest approach for households confident the charge will claw back the benefit in full or in large part every year. **Worked example** A family has two children, entitled to £27.05 + £17.90 = £44.95 a week in Child Benefit, roughly £2,337 a year. The higher earner has adjusted net income of £70,000, which is £10,000 above the £60,000 threshold, i.e. 50 lots of £200, triggering a 50% charge (50 x 1%). They must repay 50% of £2,337, approximately £1,169, through Self Assessment, keeping the other roughly £1,169 net. **Practical tip** If your income fluctuates around the £60,000-£80,000 band (for example due to bonuses or overtime), consider increasing pension contributions to reduce your adjusted net income below £60,000, which can both avoid the charge AND get valuable pension tax relief at the same time.