UK Government Reforms Child Benefit, Raising Income Thresholds
The reforms aim to alleviate the tax burden on middle-class families, with significant changes to the high income child benefit charge.
- The high income child benefit charge threshold will be raised from £50,000 to £60,000, with the full benefit not withdrawn until earnings reach £80,000.
- Around 485,000 families are expected to benefit from the reforms, gaining an average of £1,260 towards child-raising costs in 2024/25.
- The changes address criticisms of the system's unfairness, particularly towards single parents and families with one high earner.
- A consultation will be held on moving to a household-based system by April 2026, aiming for a fairer assessment of child benefit eligibility.
- The government also announced additional funding for early-years providers and special educational needs schools as part of the budget.
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