HMRC Child Benefit 'trap' set to 'punish' 35,000 UK families

Child benefit tax trap to hit 35,000 MORE families as fiscal drag bites

More families are being quietly pulled into an unpopular tax charge as pay rises collide with frozen thresholds, leaving many worse off without realising why

HMRC Child Benefit 'trap' set to 'punish' 35,000 UK families

The number of families liable for the High Income Child Benefit Charge is expected to rise from 324,000 this year to 359,000 in 2028-29 due to the tax threshold freeze

HMRC set to punish 35,000 households and deny them £1,355 perk - Birmingham Live

Another 35,000 households will be pulled into the high income child benefit charge (HICBC) trap over the next three years.

Thousands of families to be pushed into paying child benefit charge

The Chancellor’s decision to freeze tax thresholds will leave thousands of families forced to pay High Income Child Benefit Charge, eroding the value of government support. According to official HMRC forecasts, uncovered in a freedom of information request by Quilter, fiscal drag will force 35,000 more families into paying the charge, jumping from 324,000 in the 2025-26 tax season, to 359,000 by 2028-29. This follows Rachel Reeves’ decision to e…

The Morning Briefing: Fiscal drag traps 35k more in child benefit charge; When it comes to AI, I’m dreaming of holistic solutions

Good morning and welcome to your Morning Briefing for Tuesday 6 January 2026. To get this in your inbox every morning click here. Fiscal drag to pull 35,000 more families into child benefit charge Tens of thousands more families are set to be dragged into… The post The Morning Briefing: Fiscal drag traps 35k more in child benefit charge; When it comes to AI, I’m dreaming of holistic solutions appeared first on Money Marketing.

35k more families set to owe high income child benefit charge by 2028

Tens of thousands more families are set to pay the high income child benefit charge (HICBC) over the next three years, new figures have revealed. HMRC’s official forecasts show that the number of families in the UK liable for the HICBC will rise from 324,000 in 2025–26 to 359,000 in 2028–29 - an increase of roughly 35,000. Most affected families are expected to be in the tapering range of liability, between £60,000 and £80,000, meaning they will…