Changes to the High Income Child Benefit Charge

Apr 16, 2024 | Tax Tuesday

Have you previously cancelled your child benefit entitlement due to the High Income Child Benefit Charge (HICBC)? Recent changes to the threshold and rates may prompt you to reconsider.

In the Spring Budget last month, the government acknowledged the current bias against single parent households. At the moment, a single parent household earning above the threshold would be subject to the charge, while a two-parent household earning just below would be unaffected.

On the back of this, the government has committed to establishing a household-based HICBC regime by April 2026.

Since then, there have already been several changes to child benefit, starting this month. In this week’s Tax Tuesday, we share these changes and what they could mean for parents across the nation.

Changes to the High Income Child Benefit Charge

On 6 April 2024, the HICBC threshold increased from £50,000 to £60,000. In addition to this, the rate at which parents are required to pay child benefit back has been cut from 1% to 0.5%. This means that the charge will now gradually increase between incomes of £60,000 and £80,000 at a 0.5% rate of the family’s child benefit for every £100 of adjusted net income over £60,000 each year. As a result, a parent who earns over £80,000 in a year will be required to pay back the full amount of child benefit received.

Those who are already subject to the HICBC will be aware that it must be paid back via a Self Assessment tax return each year. It’s likely that the administrative burden of this may have prompted many parents to cancel their child benefit. However, the new higher threshold will mean that many parents are now entitled to the full child benefit payment. Likewise, those who are still required to pay the HICBC will pay back less than previously, perhaps making it more worthwhile to receive.

Other notable changes

On 6 April, the rates of child benefit also increased, benefitting families across the country. Now, parents will receive £25.60 (£1,331.20 per annum.) per week for eldest and only children, and £16.95 (£881.40 per annum.) for any other children. This marks an increase of £83.20 and £54.60 respectively each year.

If you would like further guidance on what the changes to the HICBC could mean for you and your family, please don’t hesitate to get in touch with our Tax Team on 0161 905 1616 or email