Child benefit update: Higher income thresholds mean more families keep their payments

Keeping up with tax changes can be a headache, but we’re here to make it simple. From now on, we’ll be breaking down key tax and finance updates in an easy-to-digest format—covering what’s changed, why it matters, and what it means for you in real terms.

Today’s update is about changes to the High Income Child Benefit Charge (HICBC)—a big shift that could mean more money in your pocket. Read on to see if you’re affected and what action you might need to take.

What is this update about?

The UK government raised the income thresholds for the High Income Child Benefit Charge (HICBC), meaning more families have been able to keep or regain access to Child Benefit since 6 April 2024.

Why is this update important for you?

If your income is between £50,000 and £80,000, you may now be entitled to receive or keep more of your Child Benefit. This change reduces the financial burden on higher-earning households and ensures that those who previously opted out may now claim some or all of their benefit back.

So what does this mean for you?

• If your individual income is below £60,000, you can keep 100% of your Child Benefit.
• If your individual income is between £60,000 and £80,000, you can keep some of your Child Benefit instead of losing it entirely.
• If you previously opted out of claiming Child Benefit due to the old threshold, you may now be eligible to claim some back. For more details visit the HRMC website.
• If your individual income is over £80,000, you will still lose all of your Child Benefit through the charge.
• The way the charge works may change again in April 2026, moving from an individual income test to a household income test.

Key action: If you’re affected, check your eligibility and update your claim to avoid missing out on payments.