Child Benefit and HICBC: The New GBP 60k-GBP 80k Threshold Explained

Child Benefit is one of the most straightforward benefits in the UK system -- until your income rises above a certain level. At that point, the High Income Child Benefit Charge (HICBC) begins clawing it back through your tax return. A major change introduced in April 2024 significantly improved the position for many families, raising the threshold from GBP 50,000 to GBP 60,000. Here is everything you need to know for 2026/27.

What Is Child Benefit Worth?

Child Benefit pays GBP 25.60 per week for the eldest or only child and GBP 16.95 per week for each additional child (2026/27 rates). For a family with two children, that is GBP 2,216.60 per year -- a meaningful sum. The benefit is paid directly to the claiming parent, usually monthly, and continues until the child turns 16 (or 20 if they remain in approved education or training).

Even if you expect to have the benefit fully clawed back, it is often still worth claiming -- because Child Benefit entitlement protects your National Insurance record. For every week you claim, you receive NI credits that count toward your State Pension entitlement, even if you receive nothing net after the HICBC.

The New Threshold: GBP 60,000

Before April 2024, HICBC applied when the highest earner in a household had "adjusted net income" above GBP 50,000. From 6 April 2024, that threshold rose to GBP 60,000 -- and the upper limit at which benefit is fully withdrawn rose from GBP 60,000 to GBP 80,000.

This means that for 2026/27:

• Below GBP 60,000: no HICBC, you keep the full benefit
• GBP 60,000 to GBP 80,000: partial clawback
• Above GBP 80,000: full clawback -- benefit is effectively zero, but you should still consider claiming for the NI credit reason

How the Clawback Is Calculated

The charge is 1% of the Child Benefit received for every GBP 200 of income above GBP 60,000. This produces an effective clawback range of GBP 20,000 (from GBP 60,000 to GBP 80,000).

Put another way: for every GBP 200 above the threshold, 1% of the annual benefit is repaid. By GBP 80,000, 100 x 1% = 100% of the benefit has been charged back.

Example: You earn GBP 70,000. That is GBP 10,000 above the threshold. GBP 10,000 divided by GBP 200 = 50. So 50% of Child Benefit received is repayable via HICBC. For a two-child family receiving GBP 2,216.60, the charge is GBP 1,108.30.

What Counts as Adjusted Net Income?

HICBC applies to the highest earner in the household -- it is not split between partners. Adjusted net income is broadly your total income from all sources minus certain deductions:

• Gift Aid donations (grossed up)
• Personal pension contributions (grossed up)
• Trading losses

Employment income, self-employment profits, rental income, savings interest, dividends, and most other income all count. The figure is calculated on an individual basis, not jointly -- so a household where both partners earn GBP 55,000 pays no HICBC, while a household where one earns GBP 75,000 and the other earns nothing faces a 75% clawback.

Reducing Your Adjusted Net Income

If your income is between GBP 60,000 and GBP 80,000, there are legitimate ways to reduce it below the threshold or lower it within the band:

Pension contributions. Every pound contributed to a pension (personally, not employer) reduces your adjusted net income by one pound. Contributing enough to bring income below GBP 60,000 eliminates the charge entirely. This is also a very efficient use of pension contributions given the 40% tax relief many people in this income range receive.

Salary sacrifice. If your employer offers salary sacrifice for pension, childcare vouchers (for existing scheme members), or cycle-to-work, this reduces your gross pay and therefore your adjusted net income.

Gift Aid. Charitable donations made under Gift Aid extend your basic rate band and reduce adjusted net income.

Should You Opt Out of Child Benefit?

If your income is above GBP 80,000, you have two choices: continue claiming and pay the charge via Self Assessment, or opt out of receiving the benefit (while keeping the NI credit entitlement). Many people on high incomes opt out to avoid the administrative burden of Self Assessment. However, opting out requires active action -- you must contact HMRC. If circumstances change and your income drops, you can opt back in.

If you opt out of the payment but your income later falls below GBP 80,000, you will miss out on benefit payments during the opt-out period. Keeping claims active, even where the net payment is zero, retains maximum flexibility.

Registering for Self Assessment

If you receive Child Benefit and the higher earner's adjusted net income exceeds GBP 60,000, you must register for Self Assessment and pay the HICBC through your annual tax return. The deadline to register for 2025/26 was 5 October 2026. Failing to register can result in penalties.

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Use the CalcHub income tax calculator to model your adjusted net income and see exactly how Child Benefit clawback affects your household finances.