New petition calls for Child Benefit threshold rules to be based on total household income
30.10.2023 - 11:51
/ dailyrecord.co.uk
A new online petition is calling for Child Benefit rules to be changed to “take into account inflation since 2013, and make it apply to household income, not individual income”. The High Income Child Benefit Charge (HICBC) provides for Child Benefit to be clawed back through the self Assessment tax system from families where the highest earner has an income above £50,000.
The tax charge is equal to one per cent of the total Child Benefit received for every £100 earned over £50,000 and means that someone’s Child Benefit payment will be withdrawn completely when their income reaches £60,000.
Petition creator Annette Altun argues that the way the HICBC works is “outdated” and that inflation rate changes since 2013 means the “current £50,000 threshold is no longer a high income”. She said: “Basing the charge on individuals, rather than household income, means some households liable for the charge have lower incomes than households that do not have to pay the charge”.
More than 1,000 people have signed the e-petition so far, at 10,000, the UK Government will respond to the proposal.
The ‘Increase High Income Child Benefit Charge threshold and base on household income’ petition states: “We want the Government to reform the High Income Child Benefit Charge (HICBC) by increasing the income threshold for this charge to take into account inflation since 2013, and make it apply to household income, not individual income.
“Due to the Government’s policy of not increasing the threshold for HICBC, this charge now affects one-in-five families, raising over £1 billion each year for HMRC.
“We believe the way the charge works is outdated and does not take into account inflation since 2013 or household incomes. Inflation means that the