The UK Treasury has reclaimed a staggering £1.7 billion through the controversial high-income child benefit charge, with new figures revealing the massive scale of the clawback from British families.
Official HMRC data shows that 709,000 taxpayers were forced to repay part or all of their child benefit payments during the 2022-23 financial year – a dramatic increase from just 411,000 families five years earlier.
Soaring Repayments Hit Middle-Income Families
The average charge paid by affected families has risen sharply to £2,390 annually, up from £1,420 in the 2018-19 tax year. This surge reflects both growing wages pushing more parents over the threshold and the government's decision to freeze the £50,000 earnings limit since its introduction.
Experts warn that fiscal drag continues to pull more middle-income families into the charge's net each year, with the threshold remaining static while salaries gradually increase with inflation.
How the High-Income Child Benefit Charge Works
The system requires parents earning between £50,000 and £60,000 to repay 1% of their child benefit for every £100 of income over £50,000. Those earning above £60,000 must repay the entire benefit amount through self-assessment tax returns.
Many families face the difficult choice of either navigating the complex repayment process or opting out of receiving payments altogether to avoid the administrative burden.
Frozen Thresholds Create Stealth Tax Rise
Campaign groups have criticised the policy as a stealth tax on middle Britain, noting that the £50,000 threshold has remained unchanged since 2013. Had it increased with inflation, it would now stand at approximately £67,000.
The number of families affected has nearly doubled since 2018-19, demonstrating how frozen tax bands are increasingly drawing ordinary workers into higher tax brackets.
With both major political parties committed to maintaining current threshold levels, millions of British families are likely to continue facing this effective reduction in child support throughout the current parliament and beyond.
