Tax Guide: Child Benefit UK 2025/26 — Rates, High Income Charge and How to Claim

Child Benefit is paid at two rate per HMRC (gov.uk/child-benefit-rates)s depending on whether you are claiming for your eldest (or only) child or for additional children.

Weekly rates for 2025/26:

• Eldest or only child: £26.05 per week (£1,354.60 per year)
• Each additional child: £17.25 per week (£897.00 per year)

For a family with two children, the total annual payment is £2,251.60. A family with three children receives £3,148.60 per year. Payments are normally made every four weeks directly into your bank account.

If a family splits up, each parent gets the higher rate (£26.05) for the eldest child living with them. If you move in with a new partner who also claims Child Benefit, only one of you can claim at the higher rate for the eldest child in the household — the other children qualify at £17.25 each. You must report any change in family circumstances to the Child Benefit Office.

You normally qualify for Child Benefit if you are responsible for a child under 16 and live in the UK. Only one person can claim Child Benefit for each child, but there is no limit on how many children you can claim for.

You are considered responsible for a child if you either live with them or pay at least the same amount as Child Benefit towards their upkeep — for example, on food, clothes or pocket money. The benefit continues until your child turns 16, or up to age 20 if they remain in approved education or training such as A-levels, T-levels, or a traineeship.

Special eligibility rules apply in several situations. If you are adopting a child, you can claim as soon as they come to live with you — you do not need to wait for the adoption to be finalised. Foster carers qualify provided the local council is not paying towards the child's accommodation or maintenance. If you have settled status under the EU Settlement Scheme, you can claim immediately; pre-settled status requires you to meet additional conditions such as being in work or having sufficient resources.

A crucial point that many parents overlook: even if you earn above the HICBC threshold and choose not to receive payments, you should still register a claim. This protects your entitlement to National Insurance credits (vital if you are not working or earning below the NI threshold) and ensures your child automatically receives a National Insurance number before they turn 16.

The High Income Child Benefit Charge (HICBC) is a tax charge that claws back some or all of your Child Benefit if you or your partner have an individual adjusted net income above £60,000. This threshold was raised from £50,000 in April 2024 — a significant change that benefited around 170,000 families.

How the charge works from 2024/25 onwards:

• Below £60,000: No charge — you keep all your Child Benefit
• £60,000 to £80,000: You pay back 1% of your Child Benefit for every £200 earned over £60,000
• £80,000 or above: You pay back 100% — the charge equals your total Child Benefit

For example, if your adjusted net income is £67,600, you are £7,600 over the threshold. Dividing £7,600 by £200 gives 38, so you pay back 38% of your Child Benefit. For a two-child family receiving £2,251.60, the charge would be £855.61, leaving you £1,395.99 better off than not claiming.

Your adjusted net income is your total taxable income (including savings interest and dividends) before any Personal Allowances, minus certain tax reliefs such as pension contributions and Gift Aid donations. This means making additional pension contributions can reduce your adjusted net income below the threshold — a legitimate and effective strategy. See our [income tax guide](/posts/tax-guide-uk-income-tax-202526-bands-personal-allowance-paye system managed by HMRC (gov.uk/tax-codes)-and-how-to-pay-less) for more on how adjusted net income works.

If both you and your partner earn over £60,000, the person with the higher income pays the charge. The charge applies to the individual — it does not matter whose name the Child Benefit claim is in.

For more on this topic, see our guide to Marriage Allowance UK 2025/26.

You can claim Child Benefit online through GOV.UK, starting 48 hours after you register your child's birth or as soon as a child comes to live with you. Claims can be backdated for up to three months, so do not worry if you miss the first few weeks.

To make a claim, you will need your child's birth or adoption certificate (though you can start a claim without it), your bank or building society details, your National Insurance number, and your partner's National Insurance number if applicable.

The online claim process takes around 15 minutes. You can also claim by post or by phone if you cannot apply online. If you are adding another child to an existing claim, use the same online service.

Key decisions when claiming:

• Who should claim? Whoever claims gets the National Insurance credits. If one parent is not working or earns below the NI threshold, they should generally be the one to claim, as the credits protect their State Pension entitlement.
• Should you opt out of payments? If you or your partner earn over £80,000, you will pay back all the Child Benefit through the HICBC. You can opt out of receiving payments to avoid the charge while still getting NI credits. However, if your income fluctuates, it may be worth receiving the payments and paying the charge through Self Assessment — you might keep some benefit in years when your income dips below £80,000.
• Self Assessment or PAYE? If you owe the HICBC, you can pay it through Self Assessment (you must register by 5 October following the tax year) or ask HMRC to collect it through your tax code via PAYE.

If you or your partner earn between £60,000 and £80,000, several legitimate strategies can reduce or eliminate the High Income Child Benefit Charge.

Pension contributions are the most powerful tool. Every pound you contribute to a pension reduces your adjusted net income by the same amount. If you earn £65,000, a £5,000 pension contribution brings your adjusted net income to £60,000 — below the threshold — meaning you keep all your Child Benefit. For a two-child family, this effectively gives you a return of £2,251.60 on top of the pension tax relief. See our guide on pension tax relief for the mechanics.

Salary sacrifice arrangements with your employer achieve the same result but more efficiently. By exchanging salary for employer pension contributions, you also save on National Insurance contributions — 8%, as detailed by HMRC (gov.uk/national-insurance-rates-letters) employee NI on the sacrificed amount. This makes salary sacrifice particularly attractive for parents in the HICBC taper zone.

Gift Aid donations also reduce your adjusted net income. If you regularly donate to charity, ensure you claim Gift Aid so that HMRC adjusts your income accordingly.

Splitting income between partners does not directly help, since the HICBC is based on the higher earner's individual income. However, if one partner can take on additional pension contributions or salary sacrifice to bring their income below £60,000, the charge disappears entirely.

These strategies work alongside the broader tax year end planning that all higher earners should consider before 5 April each year.

This article is for informational purposes only and does not constitute regulated financial advice. Tax rules, thresholds and allowances are subject to change. For personalised advice on your tax position, consult a qualified tax adviser or financial adviser.