Thousands of families across the UK are set to lose their Child Benefit payments next month due to a significant rule change by HM Revenue & Customs (HMRC). The shift affects households where one parent earns over £60,000 annually, with payments being gradually reduced for those earning above £50,000.
Why Are Payments Stopping?
The High Income Child Benefit Charge (HICBC) has been in place since 2013, but HMRC is now tightening its enforcement. Previously, some higher-earning parents avoided the charge by not filing a self-assessment tax return. Now, HMRC is using real-time PAYE data to identify and automatically adjust or halt payments for those exceeding the threshold.
Who Will Be Affected?
- Single parents earning over £60,000
- Couples where one partner earns above £50,000 (reduced payments)
- Families where one parent earns over £60,000 (full withdrawal)
Important note: Even if one parent earns below the threshold, the benefit will still be reduced or stopped based on the higher earner's income.
What Should Parents Do?
Experts advise affected families to:
- Check recent payslips to confirm if earnings exceed thresholds
- Review HMRC correspondence carefully
- Consider opting out of payments voluntarily to avoid repaying charges later
- Explore alternative support through tax-free childcare schemes
The changes come as many families already struggle with rising living costs, making the loss of these payments particularly impactful. A typical family with two children currently receives about £1,800 annually in Child Benefit.
