Changes to High Income Child Benefit Charge

Last updated: 08/04/2024

The government will increase the High Income Child Benefit Charge (HICBC) threshold at which Child Benefit begins to be withdrawn from £50,000 to £60,000 from 6 April 2024.
In addition, Child Benefit will not be fully withdrawn until individuals earn £80,000 or more, instead of £60,000 now. The charge is currently calculated as 1% of the Child Benefit payment made for each £100 of income above £50,000.
From 6 April 2024, the charge will be calculated as 1% for each £200 of income above £60,000, thereby reducing the total effective tax rate for those affected by the charge.
The government is also planning to administer the HICBC on a household rather than individual basis by April 2026; a consultation will follow on this.
Timing: The threshold changes will be effective from 6 April 2024. The proposal to have the HICBC to be administered on a household basis is subject to consultation, but the government would like any new rules to apply from 6 April 2026.

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