The net income threshold for eligibility to claim Child Benefit has increased from £50,000 to £60,000. People with an income over £80,000 will no longer receive any Child Benefit. They must repay any amounts claimed. The tax amount will equal the Child Benefit Payment amount.
Raising a child can be very expensive. As such, Child Benefit can help alleviate that stress. Make sure you’re getting the money you’re entitled to.
What is the Child Benefit system?
The Child Benefit system plays a crucial role in financially supporting parents throughout the UK. During a cost of living crisis, many parents face difficulties in providing their children with a high standard of living. Consequently, the system helps to alleviate these costs. This, in turn, reduces the stress and worry associated with parenting.
Child Benefits are available for children up to the age of 16. Additionally, the benefit extends to those under 20 if they are in approved full-time education or 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 eligibility for the child benefit 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 us, as we’d be more than happy to talk you through it.
