Is Child Benefit Means Tested?

Child Benefit is a tax-free payment provided by the UK government to help families with the costs of raising children. It is available to anyone responsible for a child, regardless of income, although high earners may be subject to the High Income Child Benefit Charge (HICBC).

You can claim Child Benefit regardless of your income level.

Two Separate Amounts of Child Benefit

• Higher Amount for Eldest or Only Child: £25.60 per week (as of April 2024).

• Lower Amount for Additional Children: £16.95 per week (as of April 2024).

Eligibility and Claiming

1. Eligibility:

• You must be responsible for a child or qualifying young person and reside in the UK.

• The rules for who qualifies as being responsible for a child can be complex. More details can be found on the GOV.UK website.

2. Claiming:

• Fill in and submit the Child Benefit claim form (CH2) online or by post.

• Provide necessary documentation such as your child's birth or adoption certificate.

• Even if you opt out of receiving payments, claim to ensure you get National Insurance credits and other benefits.

High Income Child Benefit Charge (HICBC)

The HICBC is a tax charge that applies if you or your partner have an adjusted net income over certain thresholds and receive Child Benefit.

1. Income Thresholds:

• More than £50,000 (for 2023/24 and earlier tax years).

• More than £60,000 for the latest tax years.

2. Tax Charge:

• If your adjusted net income exceeds these thresholds, you may have to pay back some or all of the Child Benefit.

• This can apply to you if you live with a child but the Child Benefit is claimed by someone else who contributes to the child's upkeep.

3. Responsibility for Charge:

• The person with the higher income is typically responsible for the charge.

• You may choose to stop receiving Child Benefit payments to avoid the charge while still benefiting from other advantages like National Insurance credits.

Additional Benefits of Claiming Child Benefit

1. National Insurance Credits:

• Count towards your State Pension, helping ensure you qualify for the full amount.

2. National Insurance Number for Your Child:

• Automatically issued shortly before they turn 16, without the need for a separate application.

By staying informed about your eligibility, income thresholds, and the potential implications of the High Income Child Benefit Charge, you can effectively manage and maximize the benefits of Child Benefit.