In his Spring Budget, Chancellor Jeremy Hunt announced a shake up of the child benefit system, including raising the High-Income Child Benefit Charge threshold by £10,000 - but what does this actually mean for families who claim this benefit?
Child benefit is a payment from the government to help parents with the cost of raising their family. Payments are made at a fixed-rate (which is going up in April 2024), so everyone gets the same amount. Earlier this year, there was a major change to the child benefit system to make it easier to apply and quicker for parents to start receiving the money, but the system has long been thought to be unbalanced. Those who currently earn over £50,000 end up having to pay a High-Income Child Benefit Charge, which is the equivalent of one per cent of every £100 you earn over £50,000. That means if you or your partner earn over £60,000, you are effectively replaying all of your child benefit.
