How the Clawback Works
If the higher earner in the household earns over £60,000, 1% of the benefit is clawed back for every £200 over the threshold. At £80,000, 100% is clawed back.
How to Avoid It
Pension contributions are the #1 strategy. They reduce your "adjusted net income." If you earn £65,000 and contribute £5,000 to your pension, your adjusted income drops to £60,000 — below the threshold. You keep all your child benefit AND get tax relief on the pension. See our high earner tax tips.
Child Benefit: The Full Picture
Child Benefit pays £26.05 per week for the first child and £17.25 for each additional child (2025/26). That is £1,354 per year for one child, or £2,252 for two. Crucially, you should always claim Child Benefit even if you earn above the threshold — it provides National Insurance credits for the claiming parent and registers the child for their National Insurance number at age 16. If you are subject to the High Income Charge, you can opt out of receiving payment while keeping the NI credit registration.
The High Income Child Benefit Charge (HICBC) applies when the higher earner in the household has income above £60,000. The clawback is 1% of the benefit for every £200 above £60,000. At £68,000, you would repay roughly 40% of the benefit. At £80,000, you repay 100%. The charge is based on individual income, not household income — a couple each earning £59,000 (£118,000 combined) keeps full Child Benefit, while a single earner on £70,000 loses approximately half. Use salary sacrifice pension contributions to reduce your adjusted net income below the threshold.