Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Answer of 26 April 2022 to Question 154192 on Child Benefit, if his department will make 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 Government is committed to managing the public finances in a disciplined and responsible way by targeting support where it is most needed.
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.