The short answer is no. The High Income Child Benefit Charge is not being scrapped. Current GOV.UK guidance still applies it when a Child Benefit recipient, or their partner, has adjusted net income over the threshold. It rises gradually between £60,000 and £80,000 and can recover the full amount. Budget 2026 changed something narrower: how HMRC handles a Child Benefit overpayment where a related charge has already been paid.
High Income Child Benefit Charge rules now
The charge is based on an individual’s adjusted net income, not a simple combined household salary. It can apply if you receive Child Benefit and you or your partner is over the threshold. If both partners are over it, the partner with the higher adjusted net income is responsible for paying.
| Adjusted net income | High Income Child Benefit Charge |
|---|---|
| £60,000 or less | No charge |
| Between £60,000 and £80,000 | 1% of the Child Benefit for every £200 of income over £60,000 |
| Over £80,000 | The full Child Benefit amount |
Adjusted net income is taxable income, including items such as savings interest and dividends, calculated before Personal Allowance and after certain reliefs, including pension contributions and Gift Aid. That is why two people with the same headline salary can be in different positions. HMRC provides a Child Benefit tax calculator to estimate the position.
What has actually changed under Budget 2026?
The Budget 2026 policy paper is called “Child Benefit overpayments and the High Income Child Benefit Charge”. It deals with an awkward overlap that can arise in some cases.
Sometimes HMRC charges the tax first and only later discovers that some Child Benefit was overpaid for the same period. At present, HMRC must recover the overpaid benefit, while the person who paid the tax charge may separately have to request a refund of overpaid tax — two interactions to correct connected amounts.
The new measure will let HMRC offset the benefit overpayment against the related charge payment. If the charge already paid does not cover the whole overpayment, arrangements will be made to recover the balance.
Who does the offset affect?
It affects Child Benefit recipients who received an overpayment and people who paid the charge for the relevant period. They are not always the same person. In many families, one partner receives Child Benefit while the other partner is the charge taxpayer because that partner has the higher income.
When does the change take effect?
The measure will come into force when Finance Bill 2026-27 receives Royal Assent. It will then have retrospective effect back to the charge’s introduction in January 2013. That does not abolish the charge for earlier years; it allows the new correction method to be applied to qualifying cases from that period.
What has not changed
The thresholds have not been removed. The taper remains in place, entitlement to Child Benefit itself remains separate from the tax charge, and the person with the higher income can still be liable even if the other partner is the named Child Benefit recipient.
Nor does the offset make every overpayment disappear. Any balance can still be recovered, and appeal rights in relation to a Child Benefit overpayment are not affected.
For dates rather than tax, our DWP Christmas payment dates 2026 guide shows when Child Benefit and other payments due around Christmas move. You can also use the Payment Countdown checker for regular payment dates.
What to do if you are near the £60,000 threshold
First, work out adjusted net income rather than relying on salary alone. Use HMRC’s Child Benefit tax calculator before deciding that there is either no charge or a full charge.
You then have two broad choices:
- Continue receiving Child Benefit and pay the charge. Depending on your circumstances, the charge can be paid through PAYE or Self Assessment. You must use Self Assessment if you have another reason to file a return, or if the PAYE deadline for the relevant tax year has passed.
- Opt out of receiving the payments. You remain registered for Child Benefit but do not receive the money, so there is no charge on payments that were not made. GOV.UK says opting out preserves National Insurance credits connected with the claim and ensures a National Insurance number is issued for the child before age 16.
You can restart payments later if you still qualify. A charge may still be due for the part of a tax year before payments stopped. Report family and income changes; a partner moving in or out can change who is liable and from when.
Frequently asked questions
Is the High Income Child Benefit Charge being scrapped?
No. Current GOV.UK guidance continues to apply the charge over £60,000, with a taper to the full Child Benefit amount over £80,000. The Budget 2026 change concerns offsetting certain overpayments, not abolishing the charge.
What is the Budget 2026 overpayment offset?
Where Child Benefit was overpaid for a period and a related High Income Child Benefit Charge has been paid, HMRC will be able to set one amount against the other instead of requiring the overpayment and the tax refund to be handled through entirely separate processes.
Does the charge use household income?
No. It uses each person’s adjusted net income. If both partners exceed the threshold, the partner with the higher adjusted net income pays the charge.
Can I avoid the charge by opting out?
You can opt out of receiving Child Benefit payments, which means you do not receive payments on which a charge would arise. You stay registered, and GOV.UK says the National Insurance credits and the child’s National Insurance number arrangements remain protected. A charge can still apply to payments received before the opt-out took effect.
Source: GOV.UK — Child Benefit overpayments and the High Income Child Benefit Charge
