Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will review the High Income Child Benefit Tax Charge to remove the disparity between a household with two individual incomes of £49,000 that receives full child benefit entitlement and a single parent household income of £50,000 that is required to pay the High Income Child Benefit Tax Charge.

The Government introduced the High Income Child Benefit Charge (HICBC) from January 2013 to ensure that support for families is targeted at those who need it most. The tax charge applies to anyone with an individual income over £50,000 who claims Child Benefit, or whose partner claims it.

HICBC is calculated on an individual rather than a household basis, in line with other income tax policy. Basing HICBC on household incomes would mean finding out the incomes of everyone in each of the 7.8 million households currently registered for Child Benefit. This would effectively introduce a new means test, which would be costly to administer and create burdens on the majority of families who receive Child Benefit.

The Government has no current plans to review HICBC but as with all elements of tax policy, keeps this under review as part of the annual Budget process.