Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will commit to reviewing the Higher Income Child Benefit Charge.

Restricting Child Benefit for those on higher incomes via the High Income Child Benefit Charge (HICBC) ensures that the Government can support the majority of families whilst keeping welfare expenditure sustainable. In 2020-21, the latest year that data is available, 88% of Child Benefit claimants were unaffected by the HICBC.

Moreover, the threshold for HICBC affects taxpayers who are on comparatively high incomes. In 2020-21, 99.7% of those who declared a liability for HICBC paid income tax at the higher rate or above. The Government therefore considers that the current approach to HICBC remains appropriate.

Nonetheless, the Government has introduced improvements recently. In April this year, we announced we would take steps to ensure parents can retrospectively receive a National Insurance credit. This means parents who were eligible to claim Child Benefit but who chose not to are able to protect their future State Pension entitlement. In July, we announced that employed individuals will be able to pay HICBC through their tax code, without the need to register for Self-Assessment, simplifying the process for taxpayers.