Child Benefit changes could be on the cards as Martin Lewis mentioned in a Newsnight appearance, in which he shared that Rachel Reeves had sent him a WhatsApp message following the winter fuel payment u-turn.

On Newsnight, the Money Saving Expert founder said: "I've been complaining about the Child Benefit Higher Income tax clawback for years, because what that does is that it says if the highest earner in the household earns over £80,000, you don't get Child Benefit.

"So then you've got two neighbours who earn just under £60,000, so that's £120,000 for that family. They get Child Benefit. Their next door neighbour, one earns £80,000, one earns nothing, they don't get it.

"I have been told for years that we can't split a household payment into a personal tax payment, which is exactly what the government has just done.

"So when I got a WhatsApp today from Rachel Reeves telling me, 'sorry I couldn't explain to you in person', because I've been lobbying hard that we need to change on this (winter fuel payment changes), my first reply back is, 'this is wonderful news, and I am relieved, and this is a massive improvement, and I think it will take a lot of pressure off a lot of vulnerable people'. But I did also say, 'by the way, can we now do it for Child Benefit'?."

How are Child Benefit high income charges paid?

The high-income child benefit charge applies if you or your partner earn more than £60,000. 

Under current rules, you need to file a self-assessment tax return to pay the charge, but it was mentioned in the Spring Statement that this will soon be available to pay directly through PAYE.

Once registered with HMRC, parents should be able to choose to have their HICBC collected through their monthly pay packet, meaning they’ll no longer need to file a return for that purpose.

How much is Child Benefit and what was the increase for 2025?

From April 7 2025, parents receive £26.05 a week (£1,355 a year) for their eldest or only child and £17.25 a week (£897 a year) for each additional child.

These figures are a 1.7% increase on the £1,331 a year for the eldest child and £881 a year for each additional child paid in 2024-25

For now, if your income is over the threshold, you can choose to either get Child Benefit payments and pay any tax charge at the end of each tax year, or opt out of getting payments and not pay the tax charge.

If you choose to opt out of getting Child Benefit payments

You should still fill in the Child Benefit claim form. You need to state on the form that you do not want to get payments.

You need to fill in the claim form if you want to:

  • get National Insurance credits, which count towards your State Pension
  • get your child a National Insurance number without them having to apply for one - they’ll usually get the number before they turn 16 years old

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Is there a two-child cap on Child Benefit?

No, and this is the cause of a great deal of confusion, as Martin Lewis has explained on his website Money Saving Expert.

"Child Benefit is a universal payment made for every child you have," he says. "It should accurately be called the 'two-child limit for Universal Credit or Tax Credits'.

"This one applies to the benefits that people who have low incomes, whether they're working or not working, get. That's what this is about.

"And in simple terms, it means if you have more than two children, then you won't get any additional benefit for the costs that they are incurring you (on Universal Credit and Tax Credits)."