Child Benefit
A payment to help with the costs of raising a child, which may be subject to the High Income Child Benefit Charge if you earn over £60,000.
Key Points
- ✓£25.60/week first child, £16.95/week additional children
- ✓High Income Child Benefit Charge starts at £60,000 income
- ✓Fully clawed back at £80,000
- ✓Provides National Insurance credits for State Pension
- ✓Child automatically gets NI Number at 16
Detailed Explanation
Child Benefit is a tax-free payment to help with the costs of raising a child. It's currently £25.60 per week for your first child and £16.95 per week for additional children (2024/25 rates).
Child Benefit is available to anyone responsible for a child under 16 (or under 20 if in approved education/training). You don't need to be the biological parent - foster carers and guardians can also claim.
The High Income Child Benefit Charge (HICBC) applies if you or your partner earn over £60,000. You lose 1% of Child Benefit for every £200 earned over £60,000, with it fully clawed back at £80,000.
Even if you're affected by HICBC, it's often worth claiming Child Benefit anyway. It ensures you get National Insurance credits (protecting your State Pension) and your child gets a National Insurance Number automatically at 16.
Child Benefit is usually claimed by one parent but can be transferred if circumstances change. The parent receiving Child Benefit gets National Insurance credits for years they're not working or earning below the Lower Earnings Limit.
Practical Examples
- •Family with 2 children: £25.60 + £16.95 = £42.55 per week, or £2,212.60 per year
- •Higher earner on £70,000: HICBC claws back 50% of Child Benefit (£10,000 over threshold ÷ £200 × 1% = 50%)
- •Couple where one earns £80,000 and the other earns £59,000: Full HICBC applies to the £80k earner, despite the £59k earner being under the threshold
Frequently Asked Questions
Related Terms
High Income Child Benefit Charge
A tax charge that claws back Child Benefit if you or your partner earn over £60,000, fully withdrawn at £80,000.
National Insurance (NI)
Mandatory contributions that fund State benefits including the State Pension, charged at different rates for employees, employers, and self-employed.
State Pension
A regular payment from the government when you reach State Pension age (currently 66), based on your National Insurance record.
Lower Earnings Limit (LEL)
The minimum earnings level (£6,396 for 2024/25) at which you start building qualifying years for State Pension, though you don't pay NI.