Question 1

What is the High Income Child Benefit Charge?

Accepted Answer

The High Income Child Benefit Charge (HICBC) is a tax charge that claws back child benefit from households where the higher earner has adjusted net income above £60,000. For every £200 of income above £60,000, 1% of the child benefit is charged back. At £80,000, 100% is clawed back.

Question 2

Can pension contributions reduce the HICBC?

Accepted Answer

Yes. Pension contributions (both personal contributions and salary sacrifice) reduce your adjusted net income. If your contributions bring your adjusted income below £60,000, the HICBC is eliminated entirely and you keep your full child benefit.

Question 3

How much is child benefit in 2025/26?

Accepted Answer

In the 2025/26 tax year, child benefit is £26.05 per week for the eldest or only child (£1,354.60/year) and £17.25 per week for each additional child (£897.00/year). A family with two children receives £2,251.60 per year.

Question 4

Should I opt out of child benefit to avoid the HICBC?

Accepted Answer

Opting out avoids the charge, but the non-working or lower-earning partner may lose National Insurance credits that count towards their state pension. An alternative is to continue claiming child benefit (preserving NI credits) and pay the charge through self-assessment — or make pension contributions to bring adjusted income below the £60,000 threshold.

HICBC pension calculator — keep your child benefit