👶
SMP Just Went Up to £194.32/Week — What Does That Look Like Month by Month?
6 min read
Child Benefit is worth up to £1,331/year for the first child and £881/year for each additional child in 2026/27. But families where one partner earns over £60,000 must repay some or all of it through the High Income Child Benefit Charge (HICBC). Here's exactly how it works.
The £200 Rule Explained
For every £200 you earn above £60,000, you must repay 1% of your family's total Child Benefit. By the time you earn £80,000, you repay 100% — effectively receiving zero benefit.
| Income | % of Child Benefit Repaid | Effective Annual CB (1 child) |
|---|---|---|
| Below £60,000 | 0% | £1,331 |
| £62,000 | 10% | £1,198 |
| £65,000 | 25% | £998 |
| £70,000 | 50% | £666 |
| £75,000 | 75% | £333 |
| £80,000+ | 100% | £0 |
Should You Claim Child Benefit If You Earn Over £60k?
Yes — almost always. Even if you'll have to repay it all, claiming Child Benefit:
- Ensures your child's NI number is automatically registered
- Counts qualifying years towards your State Pension if you're not working
- Maintains your right to receive the benefit if your income later falls
Simply elect to pay back the charge through Self Assessment — don't stop claiming.
The Salary Sacrifice Workaround
The HICBC is based on your "adjusted net income" — which is reduced by pension contributions. If your salary is £68,000, contributing £8,000/year to your pension via salary sacrifice brings you below £60,000, avoiding the charge entirely and saving you potentially £1,000+ in benefit plus tax relief on the pension contribution.
Frequently Asked Questions
What if I have two children?
The HICBC repays a percentage of your total family Child Benefit. With 2 children, total CB is £1,331 + £881 = £2,212/year. At £70,000 income (50% repayment), you repay £1,106. At £80,000+, you repay all £2,212.
Can HMRC find out I've been claiming Child Benefit without paying the charge?
Yes. HMRC cross-references their Child Benefit data with PAYE income records. Failing to register for Self Assessment to pay the HICBC can result in backdated charges plus interest and penalties.
Calculate your Child Benefit entitlement with our Child Benefit Calculator.