High Income Child Benefit Charge (2026/27)
If one partner in a UK household has adjusted net income above £60,000 and Child Benefit is claimed for any child in the household, the higher-earning partner pays the High Income Child Benefit Charge (HICBC) - 1% of the benefit per £200 of adjusted net income above £60,000, up to 100% at £80,000.
Child Benefit rates 2026/27
- Eldest or only child: £26.05 a week (£1,355 a year).
- Each additional child: £17.25 a week (£897 a year).
HICBC at typical incomes
| Children | Weekly benefit | Annual benefit | HICBC at £70k | HICBC at £80k |
|---|---|---|---|---|
| 1 | £26 | £1,355 | £677 | £1,355 |
| 2 | £43 | £2,252 | £1,126 | £2,252 |
| 3 | £61 | £3,149 | £1,574 | £3,149 |
| 4 | £78 | £4,046 | £2,023 | £4,046 |
At adjusted net income of £80,000 or above, the HICBC is 100% of the Child Benefit - the household has fully lost the benefit through the tax system.
The pension sacrifice escape
HICBC is calculated on adjusted net income, which is reduced by member pension contributions made via RAS or net pay arrangement, and by salary-sacrifice contributions. By sacrificing enough salary into pension to bring adjusted net income to £60,000 or below, the higher-earning partner eliminates the HICBC entirely while also avoiding 40% Income Tax and 2% NI on the sacrificed pounds.
Example: a £73,000 earner with two children sacrificing £13,000 into pension brings adjusted net income to £60,000. The £13,000 avoids 42% IT+NI (saving £5,460) AND avoids 65% HICBC on the household's £2,260 annual Child Benefit (saving £1,470). Net benefit of the sacrifice: about £6,930 tax+HICBC saving on a contribution that arrives in pension at full £13,000 value - equivalent to a 53% combined relief rate on the pound.
Frequently asked questions
- What is the High Income Child Benefit Charge?
- HICBC is an Income Tax charge applied when one partner in a household receives Child Benefit and one partner has adjusted net income above £60,000 per year. The charge is 1% of the Child Benefit received for every £200 of adjusted net income above £60,000, up to 100% at £80,000 - fully clawing back the benefit.
- Who pays the HICBC?
- The higher-earning partner pays the HICBC even if the lower-earning partner is the one who claims Child Benefit. There's no joint assessment - just a comparison of each adult's adjusted net income against the £60,000 trigger.
- When did the threshold rise from £50,000 to £60,000?
- The HICBC threshold rose from £50,000 to £60,000 with effect from 6 April 2024, after years of frozen thresholds had pulled millions more parents into the charge through "fiscal drag". The full-claw-back ceiling rose at the same time from £60,000 to £80,000. Both thresholds remain unchanged for the 2026/27 tax year.
- Can I avoid HICBC by stopping the Child Benefit claim?
- Yes - you can choose not to receive Child Benefit, in which case there's no charge. However: (1) the claim itself still gives you Class 3 NI credits toward State Pension for the non-working parent if a child is under 12, (2) Child Benefit also confirms your child is on the HMRC system for various other purposes. The standard advice is to claim Child Benefit but elect not to receive payment if the charge would otherwise be 100% - retaining the NI credits without paying the charge.
- How does pension sacrifice avoid HICBC?
- HICBC is calculated on adjusted net income, which is taxable income LESS member pension contributions (RAS or net pay) and Gift Aid donations grossed up. Sacrificing salary into a workplace pension reduces adjusted net income pound for pound. A higher earner around £70,000 can sacrifice £10,000 into pension to bring adjusted net income to £60,000 - eliminating the HICBC entirely. The sacrifice also avoids 40% Income Tax + 2% NI on the same pound.