Child Benefit and HICBC 2026/27: Rates, the GBP 60,000 Threshold and April 2024 Changes

Child Benefit Rates for 2026/27

Child Benefit is a universal payment made to those responsible for raising a child. In 2026/27, the weekly rates are:

• GBP 26.05 for the eldest or only qualifying child
• GBP 17.25 for each additional qualifying child

Payments are made every four weeks. For two children, the annual value is approximately GBP 2,259 (GBP 26.05 x 52) plus GBP 897 (GBP 17.25 x 52), totalling around GBP 3,156 per year.

Child Benefit can be claimed from the week following a child's birth until they turn 16, or up to age 20 if they remain in approved full-time education or training (such as A levels, T levels, or an apprenticeship).

How the High Income Child Benefit Charge Works

The HICBC is a tax charge that claws back Child Benefit from higher-income individuals. It applies when your adjusted net income (ANI) exceeds GBP 60,000 in a tax year.

The charge is calculated as:

• 1% of Child Benefit received for every GBP 200 of ANI above GBP 60,000
• So for every GBP 2,000 above GBP 60,000, 10% of the benefit is charged
• At GBP 80,000 ANI (GBP 20,000 above the threshold), 100% of the benefit is clawed back

Adjusted net income is calculated as total income minus personal pension contributions and qualifying gift aid donations. Employer pension contributions do not reduce ANI.

Worked Example

A parent earns GBP 68,000 and receives Child Benefit for two children: approximately GBP 3,156 per year.

• ANI above GBP 60,000: GBP 8,000
• GBP 8,000 / GBP 200 = 40 units of 1%
• HICBC = 40% of GBP 3,156 = GBP 1,262.40

The parent keeps GBP 3,156 in Child Benefit but pays GBP 1,262.40 back through their Self Assessment return. Net benefit retained: approximately GBP 1,893.60.

The April 2024 Rule Change: Individual Assessment

Before April 2024, the HICBC was triggered by the higher earner in a couple's household. This created a well-documented unfairness: two earners each on GBP 59,000 (combined GBP 118,000) faced no charge, while a single earner on GBP 62,000 faced a significant clawback.

From April 2024, the charge is assessed on each individual's own income, not on a household basis. Each claimant's HICBC is now based solely on their own ANI. This change benefits couples where one partner earns above GBP 60,000 while the other earns below that threshold -- only the individual whose income triggers the threshold pays the charge, based on their own income against their own proportion of the benefit.

Whether to Opt Out

Many families facing the full HICBC choose to opt out of receiving Child Benefit payments. However, there are strong reasons to keep the claim active even if you are repaying all of it:

1. NI credits: a non-working parent claiming Child Benefit accrues NI credits towards the State Pension for each year they are the primary carer
2. Child's NI number: HMRC automatically issues an NI number to children registered for Child Benefit at age 16
3. Flexibility: if your income drops below GBP 60,000 (due to redundancy, career break, or pension contributions), you benefit immediately without having to restart the claim

You can opt out of payments but retain NI credits by notifying HMRC. This is the recommended approach for those confident their income will remain above the threshold long term.