Overview
- HMRC forecasts obtained via a Quilter FOI show families liable for the High Income Child Benefit Charge rising from 324,000 in 2025–26 to 359,000 by 2028–29.
- Most newly affected households fall into the tapering band between £60,000 and £80,000 of adjusted net income, with forecasts rising from 213,000 in 2025–26 to 246,000 by 2028–29, while about 111,000 a year repay in full.
- The charge starts at £60,000 with a 1% clawback for every £200 over the threshold and reaches full repayment at £80,000, prompting some families to use salary sacrifice or opt out.
- From April 2026, Child Benefit rises by 3.8% to £27.05 a week for a first child and £17.90 for others, and the two‑child cap is removed, a change the OBR costs at £2.3bn in 2026–27 and £3bn in 2029–30.
- CityAM reports the Treasury has extended the tax threshold freeze to 2031 to raise revenue, while HMRC lacks data on how many higher earners have children, limiting visibility over who is affected.