How it works
Child Benefit rates in 2026/27
Child Benefit is a tax-free payment for people responsible for children under 16 (or under 20 if in approved education or training). For 2026/27 the weekly rates are:
| Which child | Weekly rate | Annual rate |
|---|---|---|
| Eldest (or only) child | £26.05 | £1,354.60 |
| Each additional child | £17.25 | £897.00 |
What is the High Income Child Benefit Charge (HICBC)?
If you or your partner has an adjusted net income over £60,000, you (the higher earner) must pay the High Income Child Benefit Charge via Self Assessment. This is a tax charge that claws back the Child Benefit already paid. The charge is designed so that Child Benefit is fully withdrawn at £80,000.
Adjusted net income is your total income (salary, rental income, savings interest, dividends, etc.) minus certain reliefs — most notably pension contributions, Gift Aid donations, and trading losses.
How the taper is calculated
The HICBC rate is 1% of total Child Benefit received for every £200 of adjusted net income above £60,000. This means:
| Adjusted net income | Amount above £60k | HICBC (1 child) | Child Benefit kept (net) |
|---|---|---|---|
| £60,000 | £0 | £0 | £1,354.60 |
| £65,000 | £5,000 | £677.30 (50%) | £677.30 |
| £70,000 | £10,000 | £1,016.00 (75%) | £338.60 |
| £75,000 | £15,000 | £1,286.50 (95%) | £68.10 |
| £80,000+ | £20,000+ | £1,354.60 (100%) | £0 |
Adjusted net income — what counts and what reduces it
Adjusted net income is calculated by HMRC as gross income minus reliefs. Key reliefs that reduce it:
- Pension contributions (employee contributions under salary sacrifice or personal/SIPP contributions grossed up for basic-rate relief).
- Gift Aid donations — the gross value (your donation ÷ 0.8) is deducted.
- Trading losses — if you are self-employed.
Strategy: reducing adjusted net income to protect Child Benefit
If your income is between £60,000 and £80,000, increasing your pension contributions is often the most tax-efficient action you can take. For a basic-rate taxpayer at £65,000:
Every £1,000 of additional pension contribution reduces adjusted net income by £1,000. This saves £200 in Income Tax (20%) PLUS reinstates 5 × 1% = 5% of Child Benefit on the margin. With one child (£1,354.60/year), saving £200 in HICBC per £200 increment is equivalent to a 100% effective rate of relief on that contribution at the margin.
Higher-rate taxpayers (earning £50,270–£125,140) can claim 40% relief through Self Assessment. A £5,000 pension contribution costs just £3,000 after basic-rate relief at source plus a higher-rate claim, and may fully reinstate several weeks of Child Benefit.
| Action | Benefit |
|---|---|
| Increase pension contributions | Reduces adjusted net income, keeps or reinstates Child Benefit |
| Gift Aid a charitable donation | Gross value reduces adjusted net income |
| Salary sacrifice | Reduces gross income — not counted in adjusted net income at all |
| Opt out of Child Benefit | No HICBC — but you lose NI credits if not working (affects State Pension) |
Should you opt out of Child Benefit entirely?
If your income is £80,000+ you have two options: continue claiming and pay back 100% via HICBC (a net zero payment, but costs Self Assessment admin time), or opt out of Child Benefit payments. Both result in the same net financial position.
Importantly, opting out does NOT cancel your eligibility. You remain registered, which is critical because:
- National Insurance credits: If you are not working, Child Benefit registration gives you automatic NI credits for each week the benefit applies, protecting your State Pension record. Losing these credits has a long-run cost.
- Child's NI number: Child Benefit registration is what triggers the automatic issue of your child's National Insurance number at age 16.
- Recommencing payments is easy: If the higher earner's income drops below £60,000, you can restart Child Benefit payments without a new application.
How to register and pay the HICBC
Claim Child Benefit online via GOV.UK. If your adjusted net income is between £60,000 and £80,000, you must file a Self Assessment tax return each year and declare the HICBC. If you have not filed before, you need to register for Self Assessment with HMRC by 5 October following the end of the tax year in which you first become liable.