In the 2024 Budget, the government increased the amount you can earn before you start to lose child benefit.
Previously, it was taken away entirely when one parent earned more than £60,000. This has been increased to £80,000.
It won’t start to be reduced until one parent earns more than £60,000 – up from £50,000.
Payments are reduced as a result of the High Income Child Benefit Charge (HICBC)., external
The HICBC rules have been criticised for unfairly penalising single parents and families with one high earner.
A household where two parents earn £60,000 – with a total household income of £120,000 – can get the full amount.
But if a household has one parent who earns just above £60,000, their child benefit will be be reduced, and cut altogether once they earn more than £80,000.
In the Budget, then-Chancellor Jeremy Hunt also announced a consultation about letting HMRC collect information about all the adults in the child’s house.
This would mean that from April 2026, child benefit claims would be based on total household income instead of the highest earner’s wage – a move that has been broadly welcomed.