Child Benefit has risen to £27.05 per week from 6 April 2026, giving over 6.9 million UK families a modest annual uplift of £52 for an eldest or only child.
The rate increase, confirmed by the Treasury in a November 2025 House of Commons statement, applies the 3.8% September 2025 Consumer Prices Index figure.
The High Income Child Benefit Charge thresholds remain frozen at their April 2024 levels, however, meaning families earning over £60,000 face repaying some or all of the benefit through Self Assessment or PAYE.
Key figures at a glance:
- New rate for eldest or only child: £27.05 per week (up from £26.05)
- Additional children: £17.90 per week (up from £17.25)
- Annual value for one child: £1,406.60 (up from £1,354.60)
- HICBC kicks in at: £60,000 adjusted net income
- Full clawback at: £80,000 — entire benefit repaid
- Estimated total paid in HICBC in 2022 to 2023: approximately £525 million by around 440,000 individuals, according to HMRC data cited by the House of Commons Library
Why rates rose but thresholds stayed frozen
The rate increase is driven by a statutory duty placed on HM Treasury by the Tax Credits Act 2002, which requires an annual review of Child Benefit in line with price growth.
The HICBC thresholds are a separate matter and are set by policy, not statute. They were last reformed in April 2024, when the previous government raised the entry point from £50,000 to £60,000 and halved the rate of taper, so the benefit is fully withdrawn only at £80,000.
At the Autumn Budget 2024, the then-proposed reform to base the charge on household income — rather than individual income — was scrapped.
The House of Commons Library notes the estimated cost of that change was around £1.4 billion by 2029 to 2030. With no further threshold changes planned, the frozen bands continue to pull more families into scope as earnings rise.
How the Child Benefit tax trap 2026 works
The HICBC applies to the higher earner in a household — not the person who claims the benefit. For every £200 of adjusted net income above £60,000, 1% of the annual Child Benefit received is repayable.
At £70,000 income, 50% of the benefit is clawed back. At £80,000 or above, the full amount is repayable — meaning a family with one child could receive £1,406.60 in the 2026 to 2027 tax year and potentially owe all of it back.
A notable structural quirk remains: two parents each earning £59,999 face no charge on a combined £119,998, while a single earner on £80,000 repays the benefit in full.
The individual-income basis of the charge, criticised by the House of Commons Library since it was introduced, has not changed.
According to HMRC data, approximately 440,000 individuals paid a total of around £525 million in HICBC liability in the 2022 to 2023 tax year — the most recent period for which HMRC estimates are available.
What this means for you
If your adjusted net income — or your partner’s — is above £60,000, you are in scope for the HICBC for the 2026 to 2027 tax year.
Adjusted net income is your total income reduced by certain tax reliefs, including pension contributions. If pension contributions bring your income below £60,000, no charge arises.
From September 2025, employed individuals whose only Self Assessment obligation is the HICBC may be able to pay the charge through their PAYE tax code instead of filing a return.
HMRC’s pay your High Income Child Benefit Charge through PAYE service on GOV.UK covers eligibility and how to switch.
Eligible taxpayers can opt out of Self Assessment and have the charge collected automatically through their tax code instead.
However, those with other Self Assessment obligations — such as self-employment income or rental income — continue to report via their tax return.
If you are in scope for the HICBC, here are the key steps:
- Check your adjusted net income — deduct pension contributions and Gift Aid donations from your total income.
- If income exceeds £60,000, register for Self Assessment with HMRC (or use the PAYE option if you are an employee with no other return obligations).
- Claim Child Benefit regardless of your income — even if you repay it in full, claiming protects National Insurance credits towards your State Pension.
- Report and repay the charge by the 31 January deadline following the end of the relevant tax year.
For more detail on how the repayment process works and what to include on your return, the Child Benefit Tax Return guide at Tax Rebate Services covers the steps from registration through to calculation and payment.
Could you reduce or eliminate your charge?
Pension contributions are the most commonly used route to reduce adjusted net income below the £60,000 threshold, or to lower the proportion of benefit repayable.
A gross contribution of £10,000 by someone with an adjusted net income of £70,000 could remove the charge entirely, while also increasing pension savings and reducing income tax.
Families who have opted out of receiving Child Benefit payments to avoid the charge should still consider re-registering.
Registering — and then choosing not to receive payment — preserves the National Insurance credits that count towards the State Pension and ensures a child is issued with a National Insurance number before age 16.
Key Takeaways
- Child Benefit rose to £27.05 per week for an eldest or only child from 6 April 2026, a 3.8% increase in line with September 2025 CPI figures confirmed by the Treasury.
- The HICBC thresholds remain unchanged since April 2024: the charge starts at £60,000 adjusted net income and the benefit is fully clawed back at £80,000.
- The 1% per £200 taper means a family with one child on a £70,000 income could repay around £703.30 of the £1,406.60 annual benefit for 2026 to 2027.
- Approximately 440,000 individuals paid around £525 million in HICBC liability in 2022 to 2023, according to HMRC estimates cited by the House of Commons Library.
- From September 2025, employed individuals whose only Self Assessment obligation is the HICBC may pay the charge through PAYE instead of filing a tax return.
- Pension contributions that reduce adjusted net income below £60,000 may eliminate the charge — always confirm your position with HMRC or a qualified tax adviser.
