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A treasury minister has responded to calls to base the child benefit payment on household income rather than individual earnings. Last March, the government announced that it would consult on changing the system to use household income to determine eligibility for the benefit. This action was supported by campaigners like Martin Lewis , who pointed out the unfairness of the current individual-based system. However, seven months later, the government announced that it would not proceed with this reform. This decision was criticized by some for being "bad news" for single parents and other single earners. Child Benefit is currently calculated based on the income of the highest earner in a household. If an individual or their partner earns over £60,000 a year, they must pay back some or all of the benefit through a tax charge. This system can be disadvantageous for single-earner households, where a single parent earning over £50,000 could be liable for the charge, while a dual-income couple earning £49,000 each might not be. In the House of Commons on Friday, the question of yet another U-turn on the issue was broached by Labour MP for Morecambe and Lunesdale, Lizzi Collinge. She asked Exchequer Secretary to the Treasury, Dan Tomlinson, whether the Chancellor is considering changing the child benefit taper system to reflect household rather than individual income once again. The MP for Chipping Barnet responded, claiming that "basing the charge on household rather than individual incomes would come at a significant fiscal cost if we were to ensure that no families lose out". Mr Tomlinson added: "By withdrawing Child Benefit from high-income parents where the higher earner earns £60,000 or more, the HICBC helps to ensure the sustainability of the public finances and protect our vital public services." The discussion follows last month's announcement that thousands of families claiming child benefit will now have the option to pay the high income tax charge through their tax code for the first time. This means HMRC will adjust your tax code and the charge will be deducted from your salary. Claimants have until January 31, 2026 to opt in for the latest 2024/25 tax year, which ended on April 5, 2025. People can still choose to pay the high income charge through self-assessment if they prefer.
