Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 May 2022 to Question 869 on Child Benefit, if his Department will (a) make and (b) publish an assessment of the potential merits of indexing the High Income Child Benefit Charge threshold in line with inflation.

The Government introduced the High Income Child Benefit Charge (HICBC) to ensure that support for families is targeted at those who need it most. It applies to anyone with an individual adjusted net income over £50,000 who gets, or whose partner gets, Child Benefit. The charge increases gradually for those with incomes between £50,000 and £60,000. The HICBC threshold has never been indexed with inflation.

The threshold of £50,000 only affects a minority of those who get Child Benefit with comparatively high incomes. The Government has decided that the current threshold for HICBC remains the best option. As with all elements of tax policy, the threshold is kept under review as part of the Government’s annual Budget process. If the Government does determine that it is appropriate to make any change to the HICBC threshold, an assessment will be published on GOV.UK.