Should I claim Child Benefit if I earn over £60,000?

Yes — you should almost always claim Child Benefit even on a higher income. If you or your partner earns between £60,000 and £80,000 you'll keep some of it, and even above £80,000 you should still claim to protect your National Insurance record. You can opt out of payments but still register the claim.

What is the High Income Child Benefit Charge?

The HICBC is a tax charge that claws back Child Benefit when the higher earner in a household has income over £60,000. You lose 1% of the benefit for every £200 over £60,000. At £80,000 or above, you repay 100% of the benefit through your self-assessment tax return.

Do I still get NI credits if I opt out of Child Benefit?

Only if you fill in the Child Benefit claim form AND choose to not receive payments. Simply not claiming at all means you miss out on NI credits. The non-working parent (or lower earner staying home) needs these credits to protect their state pension — each missing year costs roughly £356/year in retirement.

How much is Child Benefit worth in 2026?

Child Benefit pays £26.05 per week for the first child and £17.25 for each additional child. That's £1,354 per year for one child, £2,251 for two, and £3,148 for three. Even if you pay it all back through HICBC, the NI credits for a stay-at-home parent are worth roughly £356 per year in future state pension.

Benefits & Support

Should I Claim Child Benefit on a Higher Rate Income? — HICBC Explained

Is it worth claiming Child Benefit if you or your partner earns over £60,000? Understanding the High Income Child Benefit Charge, NI credits, and when claiming still makes financial sense.

By PocketWise · 8 April 2026 · 3 min read

Benefits information is based on current DWP and HMRC rules. Entitlements depend on your personal circumstances. For free personalised help, contact Citizens Advice or call the Universal Credit helpline on 0800 328 5644.

The High Income Child Benefit Charge confuses thousands of families. Here’s a clear guide to whether you should claim, opt out of payments, or do nothing.

Child Benefit Rates 2025/26

Children	Weekly amount	Annual amount
First child	£26.05	£1,354
Second child	£17.25	£897
Third child	£17.25	£897
Two children total	£43.30	£2,251
Three children total	£60.55	£3,148

How the High Income Child Benefit Charge Works

The HICBC applies when the higher earner in a household has adjusted net income above £60,000.

Income of higher earner	What you keep
Under £60,000	100% of Child Benefit
£60,000 – £80,000	Gradually reduced (lose 1% per £200 over £60k)
£80,000+	Effectively 0% — all clawed back

Example — Two Children, £70,000 Income

Calculation	Amount
Child Benefit received	£2,251/year
Income over £60,000	£10,000
HICBC rate	£10,000 ÷ £200 = 50%
Tax charge	50% × £2,251 = £1,126
Net benefit kept	£1,125

At £70,000, you’d still keep over £1,000 per year.

Three Options — Which Is Best?

Option 1: Claim and Receive Payments

Best if: Higher earner’s income is between £60,000 and £80,000

You receive the full benefit payments
Higher earner must register for self-assessment
Pay the HICBC charge through your tax return
You keep the difference
Stay-at-home parent gets NI credits automatically

Option 2: Claim but Opt Out of Payments

Best if: Higher earner’s income is over £80,000

You fill in the claim form but tick the box to not receive payments
No money comes in, so no HICBC to pay
No self-assessment needed (for this reason)
Crucially, the non-working parent still gets NI credits

Option 3: Don’t Claim at All

Almost never the right choice.

No payments received
No HICBC to deal with
No NI credits for the stay-at-home parent — this is the trap

Why NI Credits Matter So Much

If one parent stays home (or earns below the NI threshold), they need NI credits to build their state pension.

Scenario	Annual state pension impact
Claim Child Benefit	Full NI credit — no pension gap
Opt out of payments (but claim)	Full NI credit — no pension gap
Don’t claim at all	Missing year — lose ~£356/year in retirement

Over a career break of 10 years without claiming:

Lost NI years	Pension reduction per year	Over 20 years retirement
5 years	£1,780/year less	£35,600 lost
10 years	£3,560/year less	£71,200 lost

How to Reduce Your Income Below £60,000

Legitimate ways to reduce adjusted net income and avoid HICBC:

Strategy	How it helps
Pension contributions	Salary sacrifice or personal contributions reduce adjusted net income
Gift Aid donations	Extends your basic rate band
Salary sacrifice schemes	Childcare vouchers, cycle to work, EVs
Trading losses	If you’re self-employed

Example — Salary Sacrifice to Avoid HICBC

Before	After salary sacrifice
Salary: £65,000	Salary: £59,000
Pension contribution: £0 extra	Extra £6,000 into pension
HICBC: 25% charge	HICBC: None
Child Benefit kept: ~£1,688	Child Benefit kept: £2,251 (full)
Plus: £6,000 in pension with tax relief

Decision Flowchart

Do you have children under 16 (or under 20 in education)? → If yes, continue
Does the higher earner make under £60,000? → Claim and receive — no charge
Does the higher earner make £60,000–£80,000? → Claim and receive — keep the difference after HICBC
Does the higher earner make over £80,000? → Claim but opt out of payments — protect NI credits
Is one parent not working or earning below NI threshold? → Always claim to protect their state pension

Common Mistakes

Not claiming at all — losing NI credits worth thousands in retirement
Not registering for self-assessment — HMRC can charge penalties plus interest
Assuming it’s based on household income — it’s based on the individual higher earner only
Not using salary sacrifice — could reduce income below the threshold
Forgetting to claim for a new baby — NI credits only start when you claim

Child Benefit Guide — full eligibility and how to claim
Salary Sacrifice Guide — reduce taxable income
State Pension Guide — how NI credits build your pension
Income Tax Bands UK — understanding tax thresholds