CHILD BENEFIT · 2026/27

Child Benefit, and the £60,000 catch

£27.05 a week for your first child, £17.90 for each after. But once the higher earner passes £60,000, a tax charge starts clawing it back, and most families never see it coming. Work out yours, and the pension move that can undo it.

Child Benefit you keep:
£2,337
You keep Charge takes back

How the charge works

Child Benefit for 2026/27 is £27.05 a week for the eldest child and £17.90 for each additional child. If the higher earner's adjusted net income passes £60,000, the High Income Child Benefit Charge takes back 1% of the year's benefit for every £200 over the line. At £80,000 it has taken back everything. The charge falls on the higher earner alone; two parents on £59,000 each keep every penny while one on £81,000 loses it all.

The part worth knowing: adjusted net income is income after pension contributions and Gift Aid. In the taper, a pension contribution gets 40% tax relief and restores 5% of your Child Benefit per £1,000 contributed, which is why the effective return on pension saving between £60,000 and £80,000 is among the highest available to anyone.

Sources: gov.uk Child Benefit rates and gov.uk High Income Child Benefit Charge (2026/27). Annualised at 52 weeks; HMRC's own figures work per payment week, so pounds may differ slightly.

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Illustrative only, not financial or tax advice. Uses adjusted net income annualised over 52 weeks and assumes the higher earner is a rest-of-UK higher-rate taxpayer in the taper (Scottish rates differ; the Child Benefit rules are the same UK-wide). Not modelled: Guardian's Allowance, fostering and kinship arrangements, the charge where incomes change mid-year, and Universal Credit interactions. Pension money is normally locked until at least age 57. Always check your own position at gov.uk.

Pairs with Salary Sacrifice, Pension Tax Relief and Take-Home Pay.