Changes to the income thresholds for the claw-back of child benefit coming into force on 6 April 2024 will mean that some higher-income parents should reapply to have child benefit reinstated.

Childcare 2

The Spring Budget 2024 increase in the thresholds for the High Income Child Benefit Charge (HICBC) mean that there is no claw back until an individual has an income of £60,000 p.a. (it was £50,000 p.a. up to 5 April 2024). The threshold for the claw back of child benefit has also increased from £60,000 to £80,000.

The Institute of Chartered Accountants in England and Wales (ICAEW), note that claimants should review their situation for next year. Giving a typical example of a person earning £65,000 per year will have the full amount of child benefit clawed back for 2023/24. Rather than having to pay HICBC, they may have chosen not to receive child benefit. For 2024/25, HICBC will claw back only 25% of the child benefit. Therefore, the person may wish to consider claiming child benefit to keep 75% of it.  

The ICAEW also notes that claiming child benefit also protects your entitlement to contributory benefits such as the state pension, because claimants are automatically awarded class 3 NICs benefits. The government has announced that it will change this rule, probably from April 2026.

How to work out the High Income Child Benefit Charge
FREEVIEW: guide that shows you how to calculate the HICBC

Spring Budget 2024
Some wide-ranging reforms with a couple of tax cuts and new relief across a range of different taxes.

External links