The net income threshold for eligibility to claim Child Benefit has increased from £50,000 to £60,000. For people with an income over £80,000, no child benefit will be due and any amounts claimed will need to be repaid. The amount of tax will equal the amount of the Child  Benefit Payment.

Raising a child can be very expensive, and Child Benefit can help take that stress from your shoulders. Make sure you’re getting the money you’re entitled to.

What is the Child Benefit system?

The Child Benefit system is important for financially supporting parents across the UK. Especially during a cost of living crisis, many parents are struggling to provide their children with a higher quality of life standard. By helping to alleviate these costs, it can also help reduce the stress and worry that comes with parenting. Child Benefits are available to children up to the age of 16, or under 20 if they are in approved full-time education/training.

What has changed in the Child Benefit Threshold?

Amount

As of April 6th 2024, the amount eligible parents could receive in Child Benefit increased.

  • £25.60 a week for an only/eldest child (previously £24)
  • £16.95 a week for each additional younger child (previously £15.90)

An important reminder that only one person is able to claim the benefits for a child. If you have multiple children but they stay with different parents, the eldest of the household will receive the full £25.60.

Threshold

Beginning at the start of April, we saw some important changes come into effect regarding the Child Benefit eligibility threshold.

Initially set at £50,000, the threshold was increased to £60,000 per individual. You may have to pay a High Income Benefit Charge (HIBC) if you or your partner earns over £60,000 whilst in receipt of child benefit. For people with an income over £80,000, no child benefit will be due and any amounts claimed will need to be repaid. The amount of tax will equal the amount of the Child Benefit Payment.

You may also have to pay it if someone is earning Child Benefit from a child in your care, while contributing an equal amount towards their costs.

Why have the thresholds changed?

The changes were brought in to reflect the current economic state of the country. A single household income of £50,000 may no longer be enough to provide for multiple children, which is why the increased threshold has been introduced.

We understand that individual and combined incomes, as well as variations in relationship can make knowing what you’re entitled to complicated. So we devised this child benefit eligibility in-depth table:

Relationship Status Individual Income Combined Income (if applicable) Eligibility Tapering Impact
Single Up to £60,000 N/A Full Child Benefit No reduction
Single £60,001 – £80,000 N/A Partial Child Benefit (Tapering) Reduced by 1% for every £200 over £60,000
Single Over £80,000 N/A No Child Benefit (Full Repayment) Full repayment of benefit
Married/Civil Partners Both up to £60,000 Up to £120,000 Full Child Benefit No reduction
Married/Civil Partners One over £60,000 Combined over £60,000 Partial Child Benefit (Tapering for the higher earner) Reduced by 1% for every £200 over £60,000 for the higher earner
Married/Civil Partners One over £80,000 Combined over £80,000 No Child Benefit (Full Repayment by the higher earner) Full repayment of benefit
Cohabiting Partners Both up to £60,000 Up to £120,000 Full Child Benefit No reduction
Cohabiting Partners One over £60,000 Combined over £60,000 Partial Child Benefit (Tapering for the higher earner) Reduced by 1% for every £200 over £60,000 for the higher earner
Cohabiting Partners One over £80,000 Combined over £80,000 No Child Benefit (Full Repayment by the higher earner) Full repayment of benefit

If you’re a parent or guardian, it’s important to stay up-to-date and understand how they might affect your household’s finances. If you find yourself needing more clarity on these changes, don’t be afraid to get in touch with us, as we’d be more than happy to talk you through it.