Child Benefit is a crucial financial support for many families, helping to ease the cost of raising children. The recent change in the earnings threshold for receiving Child Benefit is great news for many households across the UK. Let’s dive into what this means for you and how you can take advantage of this update.
What is Child Benefit?
Child Benefit is a regular payment provided by the government to help with the costs of raising children. It’s available to anyone responsible for a child under 16 (or under 20 if they stay in approved education or training).
What Has Changed?
On April 6, 2024, the earnings threshold for the High-Income Child Benefit Charge (HICBC) was increased. Previously, if you or your partner earned more than £50,000 a year, you would have to pay back some or all of your Child Benefit through the HICBC. Now, this threshold has been raised, allowing more families to retain their full benefit without needing to pay anything back.
- Previous Threshold: £50,000 per year
- New Threshold: £60,000 per year
This means families where one parent earns up to £60,000 can now receive the full Child Benefit amount without any repayments, significantly broadening the number of households that can benefit fully.

Who Pays the High-Income Child Benefit Charge (HICBC)?
If you or your partner’s individual income exceeds £60,000, you are liable to pay the HICBC. For income between £60,000 and £80,000, you will need to repay 1% of your Child Benefit for every £100 of income over £60,000. If your income is over £80,000, you will need to repay the entire amount of Child Benefit you receive. It’s important to note that the partner with the higher income is responsible for paying the HICBC, not necessarily the person receiving the Child Benefit payments.
Why Does This Matter?
- More Financial Support: With the higher threshold, more families will retain their full Child Benefit, providing greater financial support.
- Reduced Complexity: Fewer families will need to deal with the complexity of the HICBC, simplifying their finances.
- Encouraging Work: This change can be beneficial for parents considering returning to work or increasing their hours, knowing they won’t lose out on this vital benefit.
Claiming Child Benefit: Why It’s Important Even If You Have to Pay It Back
Even if your income exceeds the new £60,000 threshold and you might have to repay some or all of the Child Benefit, it is still worthwhile to claim it. Claiming Child Benefit ensures you receive National Insurance credits if your child is under 12, which count towards your State Pension. Not claiming could lead to gaps in your National Insurance record, potentially reducing your future State Pension entitlement. For parents who are not working or earning below the lower earnings limit, claiming Child Benefit ensures they are still building up their National Insurance record.
If you previously stopped claiming Child Benefit due to the HICBC, it may be beneficial to restart your claim to secure these National Insurance credits. Remember, if you or your partner’s income exceeds £60,000, you will need to file a Self Assessment tax return to report and pay the HICBC by the 31st of January following the end of the tax year in which the charge applies.
How to Claim Child Benefit

Let Inca Review Your Position
If you need assistance with your Self Assessment tax returns, including in relation to reporting and paying the HICBC, get in touch with Inca Accountants today. We’re here to help you navigate these requirements and ensure you stay compliant.
Contact one of our advisors today for an initial discussion. Call us on 01235 868888 or email us at [email protected].
