Child Benefit Threshold Raised to £60,000: What Changed in April 2024
One of the most practically significant changes in the Spring Budget 2024 was the reform of the High Income Child Benefit Charge (HICBC). From 6 April 2024, the threshold at which the charge kicks in rose from £50,000 to £60,000 of adjusted net income. The taper rate was simultaneously halved, meaning the charge only fully claws back Child Benefit at £80,000 rather than £60,000.
Around 170,000 families who previously received Child Benefit but faced a partial or full clawback through self-assessment became newly eligible to keep the full payment. A further group of families — those who had opted out of claiming Child Benefit entirely to avoid the charge and the administrative burden of a self-assessment return — can now reconsider whether to reclaim.
How the old system worked
Before April 2024, the HICBC applied to any household where the highest-earning partner had adjusted net income above £50,000. The charge reduced Child Benefit by 1% for every £100 of income above £50,000 — meaning the benefit was entirely clawed back at £60,000. This created an effective marginal tax rate of over 60% for higher earners in the £50,000–£60,000 band, particularly for families with multiple children. It was widely criticised as unfair and administratively burdensome, requiring a self-assessment return even for people who had no other reason to file.
How the new system works from April 2024
Under the reformed system, the charge does not begin until adjusted net income exceeds £60,000. Above that level, Child Benefit is reduced by 1% for every £200 of income — half the previous clawback speed. This means the benefit is only fully eliminated at £80,000. The key changes:
- Threshold: £50,000 → £60,000
- Taper: 1% per £100 above threshold → 1% per £200 above £60,000
- Full clawback income: £60,000 → £80,000
Child Benefit rates themselves also increased in April 2024: £25.60/week for the eldest or only child (up from £24), and £16.95/week for each additional child (up from £15.90).
Who should reclaim?
If you or your partner earn between £50,000 and £60,000 and previously opted out of Child Benefit to avoid the charge, you can now reclaim. The process involves contacting HMRC's Child Benefit Office and can be done online. Importantly, you may be able to claim for periods when you were eligible but not claiming — HMRC allows backdating for up to three months in normal circumstances.
Families where the higher earner is between £60,000 and £80,000 will still face a partial charge, but the effective marginal rate is now much lower than before. Use our Child Benefit Tax calculator to see exactly how much you can keep.
The longer-term picture
The government also announced plans to move to a household-income basis for the HICBC — addressing the long-standing anomaly where two earners each on £49,000 (combined £98,000) face no charge, while a single earner on £60,001 loses the full benefit. The household-income reform was expected to be implemented by 2026, requiring HMRC to build new data-sharing infrastructure between PAYE and Child Benefit systems.
Conclusion
The 2024 Child Benefit reform is a genuine improvement for hundreds of thousands of families. If you are anywhere near the £60,000–£80,000 income range, it is worth understanding where you stand before deciding whether to claim, opt out, or adjust pension contributions to bring your adjusted net income below a key threshold. Check the Child Benefit tax calculator to model your specific situation.