Child Benefit
(asked on 19th January 2022) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 14 December 2021 to Question 87844 on Child Benefit: Taxation, what estimate he has made of the number and proportion of eligible claimants who have opted out of High Income Child Benefit in each year from 2013 to 2020; and what assessment he has made of the effect of maintaining the adjusted net income threshold for that benefit at £50,000 on tax revenues in (a) 2013 and (b) 2020.
The High Income Child Benefit Charge (HICBC) was introduced in January 2013 to target support at those who need it most. It applies to anyone with an income over £50,000 who claims Child Benefit or whose partner claims it. The charge is tapered for taxpayers with incomes between £50,000 and £60,000. Where income is over £60,000, the amount of the charge is equal to the Child Benefit payments.
The table below shows the number and proportion of eligible claimants who have opted out of Child Benefit in each year from 2013 to 2020. These are the latest figures available.
| Total number of families claiming Child Benefit payment + Total number of families that have opted out of receiving Child Benefit payment (United Kingdom) | Total number of families that have opted out of receiving Child Benefit payment (United Kingdom) | Total number of families that have opted out of receiving Child Benefit payment as a proportion of the total number of families claiming Child Benefit payment + total number of families that have opted out of receiving Child Benefit payment (United Kingdom) |
August 2013 | 7,947,000 | 397,000 | 5% |
August 2014 | 7,937,000 | 476,000 | 6% |
August 2015 | 7,908,000 | 492,000 | 6% |
August 2016 | 7,900,000 | 504,000 | 6% |
August 2017 | 7,893,000 | 516,000 | 7% |
August 2018 | 7,871,000 | 545,000 | 7% |
August 2019 | 7,863,000 | 582,000 | 7% |
August 2020 | 7,834,000 | 624,000 | 8% |
The Government is committed to managing the public finances in a disciplined and responsible way by targeting support where it is most needed. The Government considers the adjusted net income threshold of £50,000 used in the administration of the HICBC to be set at the right level. Only a small minority of taxpayers, with comparatively high incomes are affected. As with all elements of tax policy, the Government keeps this under review as part of the annual Budget process. The tax revenue from the HICBC in the 2013/14 tax year was £431m and in 2019/20, it was £416m.
Details on the numbers of Child Benefit opt-outs and tax raised are published annually on GOV.UK at:
https://www.gov.uk/government/publications/high-income-child-benefit-charge-data/high-income-child-benefit-charge (opens in a new tab).