Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to raise the High Income Child Benefit Charge (HICBC) threshold; and what recent assessment she has made of the impact of that threshold on families with one working parent on a low to average income.
The Government is committed to managing the public finances in a disciplined and responsible way by targeting support where it is most needed.
The adjusted net income threshold of £50,000 only affects a minority of individuals, with comparatively high incomes. Individuals claiming Child Benefit with average and low incomes are not liable to pay HICBC. If a claimant lives with a partner earning above £50,000, their partner will be liable to pay the charge.
The Government therefore believes that the current threshold for HICBC remains the best option at present. As with all elements of tax policy, the Government keeps this under review.